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(Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc, is consibering issuing bonds that will mature in 16 years with an annual coupon rate of 11

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(Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc, is consibering issuing bonds that will mature in 16 years with an annual coupon rate of 11 percent. Their par value will be $1,000; and the interest will bo paid semiannually, Pybus is hoping to get a AA Fating on its bonds and, if it does, the yiold fo maturity on similar AA bords is 8.5 percent. However. Pybus is not sure whether the new bonds will roceive a AA rating. If they receive an A rating, the yield to maturity on similar A bonds is 9,5 percent. What will be the price of these bonds if they receive either an A or a A rating

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