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Pybus, Inc. is considering issuing bonds that will mature in 21 years with an annual coupon rate of 11 percent. Their par value will be
Pybus, Inc. is considering issuing bonds that will mature in 21 years with an annual coupon rate of 11 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 bonds and, if it does, the yield to maturity on similar AA bonds is 10.5 percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive
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