4.(Bond valuation)Pybus, Inc. is considering issuing bonds that will mature in 18 years with an annual coupon rate of 7 percent. Their par value will be $1,000, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bondsand, if itdoes, the yield to maturity on similar AA bonds is 7.5 percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an Arating, the yield to maturity on similar A bonds is 8.5 percent. What will be the price of these bonds if they receive either an A or a AArating?

A) The price of the Pybus bonds if they receive an AA rating is $? (Round to nearest cent, EX 102.25)

B) The price of the Pybus bonds if they receive an A rating is $? (Round to nearest cent)