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What the price of the pybus bonds if they receive aa rating

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Reference no: EM132816304

Pybus, Inc. is considering issuing bonds that will mature in 23 years with an annual coupon rate of 9 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 11 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 12 percent.

Problem 1: What The price of the Pybus bonds if they receive a AA rating will be

Reference no: EM132816304

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