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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 7.4% (annual payments). The following table summarizes the YTM for similar ten-year corporate bonds of various credit ratings: Rating AAA AA YTM 6.8% 7% A 7.1% BBB 7.5% BB 8% Assuming that Luther's bonds receive a AA rating, the price of the bonds will be closest to: O A $1,234 OB. $822 OC. $1,439 OD. $1,028

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