the company 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

If their bonds receive a AAA rating, what will the price of the bonds be? And, what is the number of bonds that Luther must issue to raise the needed $25 million?

What rating must they receive on these bonds if they want the bonds to be issued at par value?

Round your answers to 2 decimal places.

Rating Yield to Maturity (YTM) AAA 6.70% AA 6.80% A 7.00% BBB 7.40% BB 8.00%