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Wyatt Oil Is Contemplating Issuing a 20-Year Bond with Semiannual

Question 4

Multiple Choice

Wyatt Oil is contemplating issuing a 20-year bond with semiannual coupons,a coupon rate of 5%,and a face value of $1000.Wyatt Oil believes it can get a AAA rating from Standard and Poor's for this bond issue.If Wyatt Oil is successful in getting a AAA rating,then the issue price for these bonds would be closest to:


A) $1035.
B) $975.
C) $1000.
D) $1026.

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