$96.($Valuing bonds$)($Related to Checkpoint $9\mathrm{.}3$ on page

$302)$ Pybus, Inc., is considering

issuing bonds that will mature in $20$ years with an $8$ percent annual

coupon rate. Their

par value will be $$1,000,$ and the interest will be paid

semiannually. Pybus is hoping

to get an AA rating on its bonds but is not sure whether that will

happen. If it does, the

yield to maturity on similar AA bonds is $7\mathrm{.}5$ percent. However, if

the bonds receive

only an A rating, the yield to maturity on similar A bonds is $8\mathrm{.}5$

percent. What will be

the price of these bonds if they receive either an A or an

AA rating?$($ answer in word format $)?$