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What will be the price of these bonds

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Question - Bond valuation - What will be the price of these bonds if they receive either an A or a AA? rating??

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. The price of the Pybus bonds if they receive a AA rating will be?

Reference no: EM132805266

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