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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 66% (annual payments). The following table summarizes the YTM for similar ten-year corporate bonds of various credit ratings Rating AAA AAA BBB BB YTM -6.73% 6.93% 7.03% 743% 793% Assuming that Luther's bonds receive a AA rating the price of the bonds will be closest to O A $781' OB. $1,367 OC. $977 OD. $1.172

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