Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / luther industries needs to raise $25million to fund a new office the company plans on issu...

luther industries needs to raise $25million to fund a new office the company plans on issuing ten-year bonds with a face value of $1000 and a coupon rate of 7.2% annual payments the following

luther industries needs to raise $25million to fund a new office. the company plans on issuing ten-year bonds with a face value of $1000 and a coupon rate of 7.2% (annual payments). the following table summarizes the YTM for similar ten year corporate bonds of variohs credit ratings:

a new Luther Industries needs to raise 525 million to run Rating AAA AAA BBB BB YTM 6.77% 6.97% 7.07% 747% 797% Assuming that

a new Luther Industries needs to raise 525 million to run Rating AAA AAA BBB BB YTM 6.77% 6.97% 7.07% 747% 797% Assuming that Luther's bonds receive a AA rating the price of the bonds will be closest to O A. $1,423 O B. $813 OC. $1,016 OD. $1.219

Aug 16 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions