The Blackburn Group has recently issued 20-year, unsecured bonds rated BB by Moody's.These bonds yield 443 basis points above the Australian Treasury yield of 2.76%.The yield to maturity on these bonds is [blank].

Question

Quizplus · Accepted Answer

The yield to maturity on these bonds is calculated by adding the yield of the Australian Treasury bonds (2.76%) to the additional yield of the Blackburn Group bonds (443 basis points or 4.43%). Therefore, 2.76% + 4.43% = 7.19%.

The Blackburn Group Has Recently Issued 20-Year, Unsecured Bonds Rated