ybus, Inc. is considering issuing bonds that will mature in

21 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

12 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

13 percent. What will be the price of these bonds if they receive either an A or a AA rating?

The price of the Pybus bonds if they receive a AA rating will be how much?