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66) 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
66) 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: Assuming that Luther's bonds are rated AAA, their price will be closest to A) $1064 B) $1277 C) $1490 D) $852
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