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Mary buys a 10 year bond with face value F, semiannual nominal coupon rate 3%,...

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Finance

Mary buys a 10 year bond with face value F, semiannual nominal coupon rate 3%, and semiannual nominal yield rate 4%. She wants to reinvest the semiannual coupons into a fund earning a semiannual nominal interest rate of i (2) = 6.72% so that her non time valued net profit at maturity (A.V. of coupons + face value at maturity bond price) is $5, 000. Find the face value of the bond.

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