if you look at number 1 in derivative set #4 “Merinar” the answer suggests that to get the PV of the floating payment you use a present value factor other than the nearest (they use .9696 and not .9976). Is this an error???.. it looks like it to me.
Because treat it like a fixed bond, now at end of its life you return the pricipal amount. So e.g you issued $1 bond for simplicity with quater payment. The 4 discount factor will discount your 4 quater coupon payments and the seprate 0.9696 is used to discount the principal that is $1 u have to pay at end of life.