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 AAA rating, the price of the bonds will be closest to:
1) $1021
2) $1014
3) $1000
4) $937