1. Fun-well Limited issued a semi-annual bond with a par value of $ 36,000, coupon rate of 8% p.a. and a maturity period of 15 years.

Required:

Create a model showing the interest and principal repayment separately, and calculate the value of the bond when the required rate of return is 10% if:

1. Interest is paid annually.
2. Interest is paid semi-annually.
3. What would be the value of the bond when the required rate of return is 12%, interest paid semi-annually and with a maturity of 8 years?