a. $1,069

b. $855

c. $1,283

d. $1,496

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 $1000 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: AA BB Rating YTM AAA A BBB 6.54% 6.74% 6.84% 7.24% 7.74% Assuming that Luther's bonds receive a AAA rating, the price of the bonds will be closest to