$($Related to Checkpoint $9\mathrm{.}3)($Bond valuation$)$ Pybus, Inc. is considering issuing bonds that will mature in $24$ 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 $7\mathrm{.}5$ 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 $8\mathrm{.}5$ percent. What will be the price of these

bonds if they receive either an A or a A rating?