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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 $1,000 and a coupon rate of 7.1% (annual payments). The following table summarizes the YTM for similar ten - year corporate bonds of various credit ratings: Assuming that Luther's bonds are rated AAA, their price will be closest to A. $1,014 B. $1,217 C. $1,420 D. $811
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