Multiple Choice
Lloyd Industries raised $28 million in order to upgrade its roller kiln furnace for the production of ceramic tile.The company funded this by issuing 15-year bonds with a face value of $1000 and a coupon rating 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?
A) AA
B) A
C) BBB
D) BB
E) AAA
Correct Answer:
Verified
Correct Answer:
Verified
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