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How do you find this answer? Luther Industries needs to a se S25 milion to fund a new ofice complex. The company plans on issuing
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Luther Industries needs to a se S25 milion to fund a new ofice complex. The company plans on issuing ten year bonds with a face value o $1000 and a coupon rate o 7% annual payments). The folo ng table summarizes the YTM for similar ten-year corporate bonds of various credit ratings: Rating AAA AA B88 BB YTM 678% 6.98% 7.08% 7.48% 7.98% Assuming that Luther's bonds receive a AA rating, the number of bonds that Luther must issue to raise the needed $25 milion is closest to: OA 29,958 34,951 C 19.972 D. 24.965Step by Step Solution
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