Use the Information for the Question(s)below

question 5

Multiple Choice

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 $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:
-What rating must Luther receive on these bonds if they want the bonds to be issued at par?

• A)A
• B)B
• C)BBB
• D)AA

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Definitions:

Trigonal Planar

A molecular geometry where a central atom is connected to three other atoms placed at the corners of an equilateral triangle.

Molecular Polarity

Molecular polarity refers to the distribution of electrical charges over the atoms in a molecule, affecting its interaction with other molecules and solvents.

Solvent Interaction

The interaction between a solvent and solute which leads to the dissolution of the solute into the solvent.

Melting Point

The melting point is the temperature at which a solid substance transitions to a liquid state, indicative of the heat required to break the molecular bonds within the solid.