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Security: AAA Corporate AA Corporate A Corporate BBB Corporate Yield (%) 64 BB Corporate 70 5.6 6.2 A mining company needs to raise $100 million
Security: AAA Corporate AA Corporate A Corporate BBB Corporate Yield (%) 64 BB Corporate 70 5.6 6.2 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 6.2%, 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? OA. $800.00 OB. $1,000.00 OC. $1,400.00 OD. $1,200.00
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