Lilacs Inc. is considering issuing bonds that will mature in 19 years with an annual coupon rate of 8 percent. Their par value will be $1,000, and the interest will be paid semiannually. Lilacs is hoping to get a AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is 9.5 percent. However, Lilac is not sure whether the new bonds will receive a AA rating. If they receive an A rating, the yield to maturity on similar A bonds is 10.5 percent.

What will be the price of these bonds if they receive either an A or a AA rating?

What will be the price of the Lilac bonds if they receive a AA rating? Nearest cent round

What will be the price if a A rating?