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( Related to Checkpoint 9 . 3 ) ( Bond valuation ) Pybus, Inc. is considering issuing bonds that will mature in 2 4 years

(Related to Checkpoint 9.3)(Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 24 years with an annual coupon rate of 9 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 11 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 12 percent. What will be the price of these bonds if they
receive either an A or a AA rating?
a. The price of the Pybus bonds if they receive a AA rating will be $
B. the price of the pybus bonds if the recieve a A will be $
(Round to the nearest cent.)
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