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

5.8%

(annual payments). The following table summarizes the YTM for similar ten-year corporate bonds of various credit ratings:

Rating	AAA	AA	A	BBB	BB
YTM	6.71%	6.91%	7.01%	7.41%	7.91%

Assuming that Luther's bonds receive a AAA rating, the price of the bonds will be closest to:

A.

$ 935

B.

$ 748

C.

$1,309

D.

$ 1,122