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A twenty-year par-value bond has 12% annual coupons and a par-value of $2000. Coupons can be reinvested at a nominal interest rate of 6% convertible

A twenty-year par-value bond has 12% annual coupons and a par-value of $2000. Coupons can be reinvested at a nominal interest rate of 6% convertible semi annually. P is the highest price that an investor, who reinvests each of the coupons, can pay for the bond and obtain an effective yield rate of at least 8%. Find P.

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