(Answered) Bond valuation pybus inc is considering issuing bonds that

Finance

(Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 15 years with an annual coupon rate of 8 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 11.5 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 12.5 percent. What will be the price of these bonds if they receive either an A or a AA rating?

The price of the Pybus bonds if they receive an A rating will be? (round in nearest cent)

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92505944
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Do we need to separate bid vwap and ask vwap in calculating

Do we need to separate bid VWAP and ask VWAP in calculating VWAP? For example, for my portfolio VWAP, i would separate all the bids and asks and calculating bid VWAP and ask VWAP.

1 define organizational communication2 what interesting

1. Define organizational communication 2. What interesting about the subject of organizational communication

The global network has sales of 421945 cost of goods sold

The Global Network has sales of $421945, cost of goods sold of $270002, and inventory of $33598. What is the inventory turnover rate? Round your answer to the nearest hundredth.

How much would you pay for a share of preferred stock that

How much would you pay for a share of preferred stock that pays a $3.25 dividend and your required return for an investment of this kind is 7%?

Please help me study for a test by helping me with this

Please help me study for a test by helping me with this question. Please show work/formulas used and accuracy really matters. Thanks. What is the APR on a loan from American Pride Payday Loan Store? You've borrowed $200, ...

Suppose community bank offers to lend you 10000 for one

Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 8.00%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of ...

Question - beaver company is investigating the purchase of

Question - Beaver Company is investigating the purchase of a new threading machine that costs $18,000. The machine would save about $4,000 per year and would have a salvage value of $3,000 in 6 years when the machine wou ...

Assignment - examining a companys working capital

Assignment - Examining a company's working capital needs Select a company that has inventory, accounts receivable and accounts payable on its balance sheet. Using the most recent annual financial statement for a company, ...

What factors would influence the decision to sell a

What factors would influence the decision to sell a component of the business to raise capital to facilitate growth of another component of the business?

These two companies are investigating similar projects but

These two companies are investigating similar projects (but not both projects) in which they will invest. The characteristics of the two systems are given below: Project 1 Project 2 Initial Outlay (IO) ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert