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

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Definitions:

Quite

A word expressing a degree of agreement or the extent of an adjective or adverb; often used to modify statements.

Passed

Could refer to having been approved in a test or examination, or signifies someone or something that has moved beyond a certain point.

They're

A contraction of "they are," used to refer to two or more people, animals, or things.

Effected

Refers to something that has been brought about or achieved; an outcome that has been realized.