What will be the price of these bonds

Assignment Help Finance Basics

Reference no: EM133559874

Question: Pybus, Inc. is considering issuing bonds that will mature in 17 years with an annual coupon rate of 6 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 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 percent. What will be the price of these bonds if they receive either an A or a AA? rating?

a. The price of the Pybus bonds if they receive a AA rating will be ?$enter your response here.

? (Round to the nearest? cent.)

Reference no: EM133559874

Questions Cloud

Implement and analyze the night trading : Implement and analyze the night trading ("insomnia") strategy: For your stock, for every day you have the "Open" and "Close" prices

Differences between the online and physical locations : Next, choose another online business in the same industry and find out what its ASCI index is.

What percentage of its earnings can blue elk pay : Because of its excess funds, Blue Elk is thinking about raising its dividend payout ratio to satisfy shareholders. What percentage of its earnings can Blue

How could you still execute this business idea : how could you still execute this business idea at a relatively low cost while avoiding the tariff? Describe any disadvantages of this idea that would avoid

What will be the price of these bonds : What will be the price of these bonds if they receive either an A or a AA? rating? a. The price of the Pybus bonds if they receive a AA rating will be ?$enter

Briefly describe what a rating agency is : Briefly describe what a rating agency is and give an example. Then, describe one of the reasons, given in the text, that explains why rating agencies failed

Identify two patient-focused topics of interest : Discuss the differences in primary, secondary, and tertiary prevention. Identify two patient-focused topics of interest from the Healthy People 2030 website.

What stakeholder groups would support proceeding : What stakeholder groups would support proceeding or not proceeding with Instagram Kids, and why would these groups take that position?

Describe the communication strategy : Describe the communication strategy. Create a written document to convey the strategy's context, intent and requirements.

User Account

All Pages