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Onlay, you , ABC.Camisel hunde a folons Swad (or campan) anal me dit niet 3x Compan is paid twice mually Your deswer
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Answer #1

Answer: $2,832,740

Calculations:

Cash interest = Face value x coupon rate = $3,000,000 x 1.5% = $45,000

Present value of cash interest $167,270
[$45,000 x 3.71710 Present value annuity factor at 3% for 4 periods]
Present value of face value $2,665,470
[$3,000,000 x 0.88849 Present value factor at 3% for 4 periods]
Selling price of the bond $2,832,740

*Semi-annual rate of coupon rate is 1.5%

**Semi-annual rate of market rate is 3%

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