A Mining Company Needs to Raise $100 Million in Order

question 60

Multiple Choice

$\begin{array}{llllll}\text { Security: } & \text { AAA Corporate } & \text { AA Corporate } & \text { A Corporate } & \text { BBB Corporate } & \text { BB } \text { Corporate } \\\hline\text { Yield (\%) : }&5.6&5.7&5.9&6.4&7.0\end{array}$ 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) $1013.91
• B) $1016.41
• C) $947.22
• D) $967.64

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Definitions:

Johari Window

A model for understanding and improving self-awareness, interpersonal relationships, and group dynamics through disclosed and hidden information.

Blind Pane

Refers to the quadrant in the Johari Window model that represents information unknown to oneself but known to others.

Personality Traits

Enduring characteristics that describe an individual's behavior, mindset, and emotional patterns.

Self-Disclose

The act of revealing personal information, feelings, or experiences to others in the context of building trust or intimacy.