Find the face value of the bond

Reference no: EM13178609

An investor owns a $2;000 par-value 12% bond with semiannual coupons. The bound will mature at par at the end of fourteen years. The investor decides that a ten-year bond would be preferrable. Current yield rates are 6% convertible semiannually. The investor uses the proceeds from the sale of the 12% bond to purchase a 8% bond with semiannual coupons, maturing at par at the end of ten years. Find the face value of the 8% bond.

Reference no: EM13178609

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