Use the Information for the Question(s)below

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:

-Assuming that Luther's bonds receive a AA rating,the price of the bonds will be closest to:

A) $1021
B) $1014
C) $1000
D) $937
E) $933