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  3. 3. (3pts) an investor owns a $1000 bond with 10% s

3. (3pts) An investor owns a $1000 bond with 10% semiannual coupons. The bond will...

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Accounting

3. (3pts) An investor owns a $1000 bond with 10% semiannual coupons. The bond will mature at par at the end of 10 years. The investor decides to exchange this bond for a 6% bond with semiannual coupons, maturing at par at the end of 8 years. If the yield rate is 8% convertible semiannually, find the par value of the 8-year bond. (Answer: $1285.72)

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