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Homework answers / question archive / Use the information for the question(s) below Luther industries needs to raise $25 milion to fund a new office complex
Use the information for the question(s) below Luther industries needs to raise $25 milion to fund a new office complex. The company plans on issuing ten year bonds with a face value of $1000 and a couple of 70% (au payments) The following table summarizes the YTM for similar ton-year corporate bonds of various credit ratings Rating AM AA BAR BB YTM 6.70% 5.00% 7.00% 740% 8.00% Assuming that Luther's bands receive a MA rating the number of bonds that the most to the needed 525 milions closest to O A 24,655 OB 26 681 OC 25,000 OD. 24,477