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Luther Industries Needs to Raise $25 Million to Fund a New

Question 87

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Luther Industries needs to raise $25 million to fund a new office complex. The company plans on issuing ten-year bonds with a face value of $1,000 and a coupon rate of 6.0% (annual payments) . The following table summarizes the YTM for similar ten-year corporate bonds of various credit ratings: Luther Industries needs to raise $25 million to fund a new office complex. The company plans on issuing ten-year bonds with a face value of $1,000 and a coupon rate of 6.0% (annual payments) . The following table summarizes the YTM for similar ten-year corporate bonds of various credit ratings: Assuming that Luther's bonds receive a AA rating, the price of the bonds will be closest to ________. A) $1129 B) $941 C) $1318 D) $753 Assuming that Luther's bonds receive a AA rating, the price of the bonds will be closest to ________.


A) $1129
B) $941
C) $1318
D) $753

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