(Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 17 years with an annual coupon rate of 7%. Their par value will be $1000, and the interest will be paid semi annually. 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%. however, Publes 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%. 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 $__ (Round to the nearest cent.)

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