13) 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 7.5 % (annual payments). The following table summarizes the YTM for similar ten - year corporate bonds of various credit ratings:

Rating YTM AAA 6.60 % AA 6.80% A 6.90 % BBB 7.30 % BB 7.80 %

Assuming that Luther's bonds are rated AAA, their price will be closest to ________. A) $1277 B) $1490 C) $852 D) $1064