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(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

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(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 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 9 percent. Howevec Pytus 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 10 percent What will be the price of these bonds if they receive either an Aor a AA rating? (Round to the nearest cent) a. The price of the Pybus bonds if they receive a AA rating will be s b. The price of the Pybus bonds if they receive an A rating will be 5 (Round to the nearest cent)

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