Question 1:

The price of the Pybus bonds if they receive a AA rating will be $ _______. (Round to the nearest cent.)

Question 2

b.The price of the Pybus bonds if they receive an A rating will be $______. (Round to the nearest cent.)

= Homework: 4-1 MyFinanceLab Assignment Question 4, P9-6 (similar to) Part 1 of 2 > HW Score: 19.11%, 9.56 of 50 points Points: 0 of 4 O Save (Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 22 years with an annual coupon rate of 8 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 7.5 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 8.5 percent. What will be the price of these bonds if they receive either an A or a AA rating