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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 coupons of 7.4% (annual payments). The following table summarizes the YTM for similar ten-year corporate bonds of various credit ratings Rating AAA AA BBB BB 6.62% 6.82% 6.92% 7.32% 7.82% Assuming that Luther's bonds receive a AA rating, the number of bonds that Luther must issue to raise the needed $25 million is closest to YTM O A 19,211 mh The OB 24.014 OC 33,519 OD 28,810 co edia

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