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Pybus Inc. is considering issuing bonds that will mature in 2 1 years with an annual coupon rate of 7 % . Their par value

Pybus Inc. is considering issuing bonds that will mature in 21 years with an annual coupon rate of 7%. Their par value will be $1,000, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bond and, if it does, the yeild to maturity on similar AA bonds is 11%. However, pybus is not sure whether the new bonds will recieve an AA rating. If they recieve an A rating, the yeild to maturity on similar A bonds is 12%. What will be the price of these bonds if they receive either an A or a AA rating?

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