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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 6.8% (annual payments). The following table summarizes the YTM for similar ten-year corporate bonds of various credit ratings: Rating AAA AA BBB BB YTM 6.66% 6.86% 6.96% 7.36% 7.86% Assuming that Luther's bands receive a AA rating the price of the bonds will be closest to: A $1,414 OB. $1.212 OC. $808 OD $1,010

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