Question: ( Bond valuation ) Pybus , Inc. is considering issuing bonds that will mature in 1 6 years with an annual coupon rate of 7

(Bond valuation)Pybus, Inc. is considering issuing bonds that will mature in 16 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?
a. The price of the Pybus bonds if they receive a AA rating will be $? Round to nearest cent please

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