The Blackburn Group Has Recently Issued 20-Year, Unsecured Bonds Rated

question 70

Multiple Choice

The Blackburn Group has recently issued 20-year, unsecured bonds rated BB by Moody's. These bonds yield 443 basis points above the U.S. Treasury yield of 2.76%. The yield to maturity on these bonds is

• A) 4.43%.
• B) 7.19%
• C) 12.23%
• D) mortgage bonds.