Use the Information for the Question(s)below

question 13

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 10-year bonds with a face value of $1 000 and a coupon rate of 7.0% (annual payments) . The following table summarises the YTM for similar 10-year corporate bonds of various credit ratings:

-Assuming that Luther's bonds receive a BBB rating, the number of bonds that Luther must issue to raise the needed $25 million is closest to:

• A)25 655
• B)26 341
• C)26 000
• D)26 681

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Definitions:

Autoimmune Reaction

A response of the immune system where it mistakenly attacks the body's own tissues, mistaking them for harmful pathogens.

Gluten

The insoluble protein (prolamines) constituent of wheat and other grains; a mixture of gliadin, glutenin, and other proteins; believed to be an agent in celiac disease.

Clear Diet

A dietary regimen consisting only of transparent liquids and foods that turn into clear liquids at room temperature, often recommended before medical procedures.

Tea

A beverage made by steeping dried leaves or herbs in hot water, commonly associated with health benefits and relaxation.