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LilyGal LilyGal
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Security: AAA CorporateAA CorporateA Corporate BBB CorporateBB
Corporate
Yield (%):5.65.75.96.47.0

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?

▸ $1016.41

▸ $947.22

▸ $1013.91

▸ $967.64
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
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abonaccorso1abonaccorso1
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LilyGal Author
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