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Score: 0 of 4 pts 4 of 12 (2 complete) HW Score: 16%, 8 of 50 pts P9-6 (similar to) Question Help (Related to Checkpoint

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Score: 0 of 4 pts 4 of 12 (2 complete) HW Score: 16%, 8 of 50 pts P9-6 (similar to) Question Help (Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 25 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 7.5 percent. However, Pybus 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 8.5 percent. 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.) Score: 0 of 4 pts 5 of 12 (2 complete) HW Score: 16%, 8 of 50 pt P9-7 (similar to) Question Help (Related to Checkpoint 9.2) (Yield to maturity) The market price is $1,175 for a 10-year bond ($1,000 par value) that pays 12 percent annual interest, but makes interest payments on a semiannual basis (6 percent semiannually). What is the bond's yield to maturity? The bond's yield to maturity is %. (Round to two decimal places.)

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