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Wyatt Oil is contemplating issuing a 20-year bond with semiannual coupons, a coupon rate of 8%, and a face value of $1000. Wyatt Oil believes
Wyatt Oil is contemplating issuing a 20-year bond with semiannual coupons, a coupon rate of 8%, and a face value of $1000. Wyatt Oil believes it can get a AAA rating from Standard and Poor's for this bond issue. If Wyatt Oil is successful in getting a AAA rating, then the issue price for these bonds would be closest to:
A) $891.
B) $901.
C) $1000.
D) $1107.
E) $1125
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