Question: Use the following information to answer the question(s) below. Security Term (years) Yield (%) Treasury 20 5.5% AAA Corporate 20 7.0% BBB Corporate 20 8.0%

Use the following information to answer the question(s) below.

Security	Term (years)	Yield (%)
Treasury	20	5.5%
AAA Corporate	20	7.0%
BBB Corporate	20	8.0%
B Corporate	20	9.6%

Wyatt Oil is contemplating issuing a 20-year bond with semiannual coupons, a coupon rate of 7%, and a face value of $1000. Wyatt Oil believes it can get a BBB rating from Standard and Poor's for this bond issue. If Wyatt Oil is successful in getting a BBB rating, then the issue price for these bonds would be closest to:

	$901
	$1000
	$800
	$891

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