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(Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 23 years with an annual coupon nito of 6

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(Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 23 years with an annual coupon nito of 6 percent. Their per value will be $1,000 and the interest will be paid semiannually Pybus in hoping to get a AA rating on its bonds and, if it does, the yield to maturity on simlar AA bonds is 9 percent. However, Pybut 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? KETE

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