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Wyatt oil is contemplating issuing a 20-year bond with semiannual coupons, a coupon rate of 7%, 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 7%, and a face value of $1000. Wyatt Oil believes it can get a BBB rating from Standard and Poor's for this bond issue.

If Wyatt Oil is successful in getting a BBB rating, then the issue price for these bonds would be closest to:

a. $800

b. $891

c. $901

d. $1,000

e. $1,107

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