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(Related to Checkpoint 9.3 ) (Bond valuation) Pybus, Inc, is considering issuing bends that will mature in 20 years with an annual coupon rate of

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(Related to Checkpoint 9.3 ) (Bond valuation) Pybus, Inc, is considering issuing bends that will mature in 20 years with an annual coupon rate of 11 percent. Their par value wil be $1,000, and the interest wall be paid semiannually. Pyous is hoping to get a AA raling on its bonds and, if it does, the yield to maturity on similar AA bonds is 9 percent. However, Pytus is not sure whether the new bondi will recelve a AA rating. If they recelve an A fating, the yield to maturity on similar A bonds is 10 porcerk. What will be the price of theso bonds if they receive either an A or a AA rating

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