Pybus, Inc. is considering issuing bonds that will mature in 22 years with an annual coupon rate of 7 percent. Their par value will be ​$1000, and the interest will be paid semiannually. Pybus is hoping to get an AA rating on its bonds​ and, if it​ does, the yield to maturity on similar AA bonds is 11.5 percent. However, Pybus is not sure whether the new bonds will receive an AA rating. If they receive an A​ rating, the yield to maturity on similar A bonds is 12.5 percent. What will be the price of these bonds if they receive either an A or a AA​ rating?

"Looking for a Similar Assignment? Order now and Get 10% Discount! Use Code "Newclient"