Use the Following Information to Answer the Question(s)below

question 78

Multiple Choice

Use the following information to answer the question(s) below.
-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.

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Definitions:

Notice-And-Comment Rulemaking

A process by which U.S. federal agencies formally propose, receive, and consider public comments on a proposed regulation before it becomes final.

Administrative Agency

A government agency responsible for the oversight and administration of specific functions, such as regulation or enforcement of laws and policies.

Legal Standards

Established principles and criteria in the legal system that guide the conduct of legal cases and the administration of justice.

Regulatory Flexibility Act

A U.S. law that aims to minimize the impact of regulations on small businesses and other small entities by requiring federal agencies to consider less burdensome alternatives.