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Chick-Fil-A bonds currently sells for $1,025. They have a 9 year maturity, and 8% annual coupon, and a par value of $1,0...

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

$1,900.00

$1,018.24

$1,004.42

$1,018.62

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Answer #1

YTM of bond:

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

=7.61%

Price of the bond is:-

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

=1018.24

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