Lloyd Industries raised $28 million in order to upgrade its roller kiln furnace for the production of ceramic tiles. The company funded this by issuing 15-year bonds with a face value of $1,000 and a coupon rate of 6.2%, paid annually. The above table shows the yield to maturity for similar 15-year corporate bonds of different ratings issued at the same time. When Lloyd Industries issued their bonds, they received a price of $962.63. Which of the following is most likely to be the rating these bonds received?
Definitions:
Schemes
Plans of action, based on previous experiences, to be used in similar circumstances.
Object Permanence
The realization that objects continue to exist, even when they can no longer be perceived.
Piaget
Swiss psychologist Jean Piaget, known for his theory of cognitive development that describes how children construct a mental model of the world.
Conservation
The concept that a given quantity of matter remains the same despite being rearranged or changed in appearance, as long as nothing is added or taken away.
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