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(Related to Chackpoint 9.3) (Bond valuation) Pybus, Inc, is considering issuing bonds that wit manure in 20 years with an arnual coupon roto of 8

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(Related to Chackpoint 9.3) (Bond valuation) Pybus, Inc, is considering issuing bonds that wit manure in 20 years with an arnual coupon roto of 8 percent. Their par value will be $1,005, and th interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yild to maturity on sinilar AA bonds is 7.5 percent. However. Pybus is not sure whether the neV bonds will recelve a AA rating. If they receive an A rating. the yleld to maturify on simkar A bonds is B.5 percent. What will te the price of thoso bonds if they recoive eithar an A or a AA rating? a. The price of the Pybus bonds if they receive a AArating wil bes (Round to the nearest cent.) b. The price of the Pytus bonds if they receive an A rating wil bes (Round to the nearest cent.)

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