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%,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)$947.22
B)$967.64
C)$1013.91
D)$1016.41
E)$875.91

Question

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%,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)$947.22 
B)$967.64 
C)$1013.91 
D)$1016.41 
E)$875.91

Quizplus · Accepted Answer

The Answer of  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%,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)$947.22 
B)$967.64 
C)$1013.91 
D)$1016.41 
E)$875.91

A Mining Company Needs to Raise $100 Million in Order