Question $4$:

(Related to Checkpoint 93) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature 15 years with an annual coupon rate of9 percent Their par value will be Sl 1000, and the interest will be paid semiannually Pybus is hoping to get aAArating on its bonds and, if itdoes, the yield to maturity on similar AA bonds is 11.5 percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive anA rating, the yield to maturity on similar A bonds is 12.5 percent. What will be the price of these bonds if they receive either anA or a AA rating? a. The price of the Pybus bonds if they receive a AArating will be S 823.24*. (Round to the nearest cent) b. The price of the Pybus bonds if they receive an A rating will be (Round to the nearest cent)