A Mining Company Needs to Raise $100 Million in Order

question 100

Multiple Choice

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 $1,000 and a coupon rate of 6.5%, paid annually. The above table shows the yield to maturity for similar 30-year corporate bonds of different ratings. If the company's bonds are rated A, what will be their selling price?

• A) $1265.37
• B) $1476.27
• C) $1054.48
• D) $843.58

---

Definitions:

Amplitude

The height or intensity of a wave pattern, such as sound waves or electromagnetic waves, indicating the strength or energy of the signal.

Frequency

The number of complete wavelengths that pass a point in a given time (for example, per second).

Intensity

The magnitude or strength of a stimulus or action, often influencing its perceived importance or impact.

Taste Buds

Sensory organs located on the tongue that allow us to experience tastes, such as sweet, salty, sour, bitter, and umami.