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

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 $1000 and the interest will be paid semiannually. Pybus is hoping to get an AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is 9.5 percent. However, pybus is not sure whether the new bonds will receive an AA rating. If they receive an A rating, the yield to maturity on a similar A bonds is 10.5 percent. What will be the price of these bonds if they receive either an A or an A rating?

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