Use the Information for the Question(s)below

question 58

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 AAA rating, the number of bonds that Luther must issue to raise the needed $25 million is closest to:

• A)24 738
• B)24 777
• C)25 000
• D)24 681

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