Pybus,Inc. is considering issuing bonds that will mature in 2 0 years with an annual coupon rate
Fantastic news! We've Found the answer you've been seeking!
Question:
Pybus,Inc. is considering issuing bonds that will mature in years with an annual coupon rate of percent. Their par value will be $ and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yield maturity on similar AA bonds is percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A rating, the yield maturity on similar A bonds is percent. What will be the price of these bonds if they receive either an A or AA rating?
Posted Date: