Question: Hello, I need help with the following question. I need to use Excel spreadsheet to solve this problem. Please show what formula in Excel spreadsheet

Hello,

I need help with the following question. I need to use Excel spreadsheet to solve this problem. Please show what formula in Excel spreadsheet need to be used to determine the current prices for these bonds? Thank you!

Assume you have a 1-year investment horizon and are trying to choose among three bonds. All have the same degree of default risk and mature in 10 years. The first is a zero-coupon bond that pays $1,000 at maturity. The second has an 8% coupon rate and pays the $80 coupon once per year. The third has a 10% coupon rate and pays the $100 coupon once per year.

A). If all three bonds are now priced to yield 8% to maturity, what are their prices?

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