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

question 61

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 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)$1000.

---

Definitions:

Telecommunications Systems

Networks and technologies designed for the long-distance transmission of information, such as telephone, radio, and internet systems.

Legal Action

A process by which a court of law is involved in resolving disputes, enforcing laws, or protecting rights and properties.

Flak

Criticism or opposition, especially as a reaction to a public statement, policy, or action.

Philip Morris

An American multinational cigarette and tobacco manufacturing company, known for its Marlboro brand.