Question: Hello can you please provide assistance with the below problems? Pybus, Inc. is considering issuing bonds that will mature in 16 years with an annual

Hello can you please provide assistance with the below problems?

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 bondsand, if itdoes, 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 Arating, 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 AArating?

a.A rating? Round to the nearest cent

b.AA rating? Round to the nearest cent

Calculate the value of a bond that matures in 13 years and has a $1,000 par value. The annual coupon interest rate is 12 percent and themarket's required yield to maturity on acomparable-risk bond is 11 percent.

The value of the bond is $???(Round to the nearestcent.)

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