Question $12$

Best Foods is considering a new project and has hired Calima Financial to raise money through

a bond issue. Calima has recommended issuing a floating rate note that pays a semiannual

coupon equal to $6$ month LIBOR. For tax purposes, the bond will be sold $($issued$)$ today and will

make its first payment in exactly $3$ months. After the first coupon, subsequent coupon payments

will be made every $6$ months. That is$,$ the issue date is not a reset date. Find the value of the

bond, today $($the issue date$)$ if it has a face value of $$3,000$ and will mature in $20$ years.

LIBOR rates are annualized using semiannual compounding. Each column reports a term

structure of interest rates at a different point in time. For example, the column labeled $"2$m ago"

reports the term structure $($spot rates$)$ two months ago.

Answer: Enter your answer as a dollar value rounded to $4$ decimal places.