Use the Information for the Question(s)below

question 93

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 AA rating,the number of bonds that Luther must issue to raise the needed $25 million is closest to:

• A)24,655
• B)25,000
• C)24,477
• D)26,681
• E)25,114

---

Definitions:

Artificial Intelligence

The simulation of human intelligence by machines, enabling them to perform tasks that typically require human intelligence, such as learning, decision making, and problem-solving.

Facebook Messenger

A messaging app and platform developed by Facebook, allowing users to send messages, photos, videos, and conduct voice and video calls.

Chatbot

A computer program designed to simulate conversation with human users, especially over the Internet, used in customer service and information acquisition.

WeChat

A Chinese multi-purpose messaging, social media, and mobile payment app developed by Tencent.