Question: (Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 15 years with an annual coupon rate of 8

(Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 15 years with an annual coupon rate of 8 percent. Their par value will be 51,000, 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 A4 bonds is 9 percent. However, Pybus is not sure whether the new bonds will receive a Al 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 honds if they receive either an A or a AA rating

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