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Security: AAA Corporate AA Corporate A Corporate BBB Corporate BB Corporate Yield (%): 5.6 5.7 5.9 6.4 7.0 A mining company needs to raise $100
Security: AAA Corporate AA Corporate A Corporate BBB Corporate BB Corporate Yield (%): 5.6 5.7 5.9 6.4 7.0 A mining company needs to raise $100 million in order to begin open pit mining of a coal seam. The company will fund this by issuing 30-year bonds with a face value of $1000 and a coupon rating of 6.5%, paid annually. The above table shows the yield to maturity for similar 30-year corporate bonds of different ratings. If the mining company's bonds receive a A rating, what will be their selling price? A. $1,083.48 B. $1,516.87 C. $866.78 D. $1,300.18 Clialetan ANA
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