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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
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 7.0% (annual payments). The following table summarizes the YTM for similar ten-year corporate bonds of various credit ratings: Rating YTM 6.70% 6.80% 7.00% 7.40% . 8.00% Suppose that when these bonds were issued, Luther received a price of $972.42 for each bond. What is the likely rating that Luther's bonds received? O A. BBB OB. B OC. A OD. AA
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