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Chick-Fil-A bonds currently sells for $1,025. They have a 9 year maturity, and 8% annual coupon,...

Chick-Fil-A bonds currently sells for $1,025. They have a 9 year maturity, and 8% annual coupon, and a par value of $1,000. Assume that the yield to maturity remains constant for the next 3 years. What is the price 3 years from today? Group of answer choices

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Answer #1

Yield to maturity is calculated as follows:-

=RATE(9,8%*1000,-1025,1000)

=7.61%

Price of the bond 3 years from today:-

=PV(7.61%,6,8%*1000,1000)

=1018.42

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