Solution:
Computation of bond price | |||
Table values are based on: | |||
n= | 30 | ||
i= | 3.00% | ||
Cash flow | Table Value | Amount | Present Value |
Par (Maturity) Value | 0.41199 | $3,103,800.00 | $1,278,735 |
Interest (Annuity) | 19.60044 | $108,633.00 | $2,129,255 |
Price of bonds | $3,407,989 |
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