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(a) A company has outstanding Bond X and Bond Y. Bond X has 10 years to maturity, $1,000 par value, market price of $960.29 and

(a) A company has outstanding Bond X and Bond Y. Bond X has 10 years to maturity, $1,000 par value, market price of $960.29 and pays coupons of $40 every six months. Bond Y has 10 years to maturity, pays coupons of $50 every quarter and its market price is $3,491.90. What is the par value of Bond Y? (8 marks)

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