instructo Created qeo 3-Leaf Company is about to issue a bond with semiannual coupon payments, an...

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Answer 1

Answer #1

Price of bond is equal to the present value of all future coupon payments and the principal amount

Semi-annual rate = 12%/2 = 6%

Number of semi-annual periods = 30*2 = 60 periods

Price of bond = 3000*14%*1/2*PVAF(6%, 60 periods) + 3000*PVF(6%, 60 periods)

= 210*16.1614 +3000*0.0303

= $3,484.794

Answer 2

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