Considering issuing bonds-what will be price of these bonds

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Reference no: EM131869452

?Pybus, Inc. is considering issuing bonds that will mature in 18 years with an annual coupon rate of 11 percent. Their par value will be $1000, 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 8 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 9 percent. What will be the price of these bonds if they receive:

A rating?

AA? rating?

Reference no: EM131869452

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