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(Related to Checkpoint 9.3) (Bond valustion). Pytus, inc. is considering issuing bonds that will mature in 19 years with an arnual coupon rate of 8

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(Related to Checkpoint 9.3) (Bond valustion). Pytus, inc. is considering issuing bonds that will mature in 19 years with an arnual coupon rate of 8 percent. Their par value will be 51,000 , and the interost wil be paid semiannualy. Pybus is hoping to got a AA rating on its bonds and, if t does, the yeld to maturity on similar AAbends is 12 poroont. However, Pybus is not sure whether the new bonds will receve a AA rating. If tiey recelve an A rating, the yieid to maturity on similar A bonds is 13 percent. What will be the price of these bonds if they receive elther an A or a AA reting? a. The price of the Pyous bonds if they receive a AA rating will bes (Round to the nearest cent.) b. The price of the Pybus bonds if they receive an Arating will be 4 (Round to the nearest cent.)

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