Question: 30. Consider the following information. Security Term Yield (years) (%) Treasury 30 5.5% AAA Corporate 30 7.0% BBB Corporate 30 8.0% B Corporate 30 9.6%

30. Consider the following information. Security Term Yield (years) (%) Treasury 30 5.5% AAA Corporate 30 7.0% BBB Corporate 30 8.0% B Corporate 30 9.6% Trumpie Ventures Inc. is considering issuing a 30-year bond with annual coupons, a coupon rate of 7%, and a face value of $1000. Trumpie Ventures believes it can get a BBB rating from Standard and Poor's for this bond issue. If Trumpie Ventures is successful in getting a BBB rating, then the issue price for these bonds would be closest to: A) $950 B) $1,000 C) $850 D) $900
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