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Pybus, Inc is considering issuing bonds that will mature in 23 years with an annual coupon rate of 12%. Their par value will be $1000
Pybus, Inc is considering issuing bonds that will mature in 23 years with an annual coupon rate of 12%. Their par value will be $1000 and the interest rate Pubis is hoping to get an AA rating on its bomds and if it does yield to maturity on similar AA bonds is 9.5%. However Pybus is not sure whether the new bonds will receive AA rating the yield to maturity on similar A bonds is 10.5%. What will be the price of these bonds if they recieve either an A or AA rating?
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