Use the Information for the Question(s)below

question 5

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:
-What rating must Luther receive on these bonds if they want the bonds to be issued at par?

• A)A
• B)B
• C)BBB
• D)AA

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Definitions:

Dextrose

A simple sugar that is chemically identical to glucose, used medically as an energy source and in treating hypoglycemia.

Nasogastric Suction

A medical procedure where a tube is inserted through the nose into the stomach to remove its contents.

Potassium Supplement

A dietary supplement taken to increase potassium levels in individuals with a deficiency or to maintain adequate levels of potassium in the body.

Dorsal Venous Plexus

A network of veins located on the back of the hand and foot, involved in venous drainage.