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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

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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 $1000 and a coupon rate of 6.4% (annual payments). The following table summarizes the YTM for similar ten-year corporate bonds of various credit ratings: Rating YTM AAA AA A BBB 6.53% 6.73% 6.83% 7.23% BB 7.73% Assuming that Luther's bonds receive a AAA rating, the price of the bonds will be closest to: ... O A. $793 OB. $991 O C. $1,387 Q OD. $1,189

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