Use the Information for the Question(s)below

question 3

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

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Definitions:

Accurate Data

pertains to information that is correct, reliable, and represents facts without errors.

Behavior Development

The process by which individuals acquire or change their behaviors over time through interactions with their environment.

Statistical Analysis

The process of collecting, examining, interpreting, and presenting numerical data to discover underlying patterns and trends.

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