Security Term Yield (years) (%) 5.5% 7.0% 8.0% Treasury 20 AAA Corporate 20 BBB Corporate 20 B Corporate 20 9.6% ABC Corp. is contemplating issuing a 20-year bond with annual coupons, a coupon rate of 7%, and a face value of $1000. ABC Corp. believes it can get a BBB rating from Standard and Poor's for this bond issue. If ABC Corp. is successful in getting a BBB rating, then the issue price for these bonds would be closest to: O A. $800 OB. $891 O C. $902 OD. $1000

ABC Corp is contemplating istuing a 20-year bond with annual coupons, a covpon rate of 7%, and a face value of 51000 . ABC Corp. bolioves 2can get a BB8 rating from 57andard and Poors for this bond istue. If ABC Corp. is successtut in getting a BBB rating, then the istue price for these bonds would be closest to: A $00 A. 2 seb c. volot in 11006