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Use the information for the question(s) below. Luther Industries needs to raise $25 million to fund a new office complex. The company plans on issuing

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Use the information for the question(s) below. 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 7.0% (annual payments). The following table summarizes the YTM for similar ten-year corporate bonds of various credit ratings: AAA Rating YTM A BBB AA 6.80% 6.70% BB 8.00% 7.00% 7.40% 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? AA BBB B A

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