Issue price = {40300000 * PVAF(3.5%,30th period) } + {1612000 * PVAF(3.5%,30 periods }
= (40300000 * 0.3563) + (1612000 * 18.3920)
= 44006794
Since bond price is higher than face value, it will be issued at premium.
Note: PVAF is taken up to 4 decimals. Answer may vary slightly if more or less decimals are taken.
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