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:

Dimensioning

The process of specifying part sizes, shapes, and locations on engineering drawings to ensure parts fit and function correctly.

Extension Lines

Thin lines in technical drawing that extend from a dimension line to the feature being measured or noted.

Dimension Lines

Lines on a technical drawing that represent the measurement of an object’s length, width, or height.

Leaders

Lines in technical drawings that connect annotations or notes to specific features, usually with an arrowhead pointing to the feature of interest.