Use the Information for the Question(s)below

question 104

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:

-Assuming that Luther's bonds receive a AAA rating,the price of the bonds will be closest to:

• A)$1021
• B)$1014
• C)$1000
• D)$937
• E)$933