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