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Pybus, Inc is considering issuing bonds that will mature in 2 0 years with an annual coupon rate of 6 percent. Their par value will

Pybus, Inc is considering issuing bonds that will mature in 20 years with an annual coupon rate of 6 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, it it does, the yield to maturity on similar AA bonds is 10 percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A rating, the yield to maturity on similar A bonds is 11 percent. What will be the price of these bonds if they receive either an A or AA rating?

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