A Mining Company Needs to Raise $100 Million in Order

question 2

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

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Definitions:

Retinas

The light-sensitive layer of tissue at the back of the inner eye, essential for converting light into neural signals for vision.

Ciliary Body

The ciliary body is a part of the eye that includes the ciliary muscle, which controls the shape of the lens, and the ciliary epithelium, which produces the aqueous humor.

Choroid

A layer of the eye between the retina and the sclera, rich in blood vessels, providing oxygen and nutrients to the inner parts of the eye.

Lens

A piece of transparent material, typically glass or plastic, that refracts or focuses light rays, used in glasses and cameras.