Consolidated Insurance Wants to Raise $35 Million in Order to Build

question 23

Multiple Choice

Consolidated Insurance wants to raise $35 million in order to build a new headquarters. The company will fund this by issuing 10-year bonds with a face value of $1,000 and a coupon rate of 6.3%, paid semiannually. The above table shows the yield to maturity for similar 10-year corporate bonds of different ratings. Which of the following is closest to how many more bonds Consolidated Insurance would have to sell to raise this money if their bonds received an A rating rather than an AA rating?

• A) 937 bonds
• B) 1093 bonds
• C) 781 bonds
• D) 625 bonds

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Definitions:

Distracted Sounds

Background noises or interruptions that can detract from the focus on the primary task or communication.

Nonverbal Cues

Subtle actions or expressions that communicate messages without words, including gestures, facial expressions, and body language.

Facial Expressions

Movements of the facial muscles that convey emotions, thoughts, or reactions without using words.

Nonverbal Cues

are the ways in which people communicate without the use of spoken words, including facial expressions, body language, gestures, and other forms of physical behavior.