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

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Definitions:

Benzene

A ring-shaped hydrocarbon known for its stability and aromaticity, widely used as a precursor in the manufacture of various chemicals.

Synthesis

The process of combining simpler substances chemically to form more complex substances, often used in the context of producing new chemicals or materials.

Reagents

Substances used to cause chemical reactions or used in the synthesis of other substances.

Grignard Reagent

An organomagnesium compound used in organic chemistry for forming carbon-carbon bonds, represented by the formula RMgX, where R is an alkyl or aryl group and X is a halide.