An investor owns a $1000 par value 10% bond with semiannual coupons. The bond will mature at par at the end of 10 years. The investor decides that an 8-year bond would be preferable. Current yield rates are 7% convertible semiannually. The investor uses the proceeds from the sale of the 10 years 10% semiannual coupon bond to purchase a 6% bond with semiannual coupons, maturing at par at the end of 8 years. Find the par value of the 8 year bond. Hint : Calculate the price of 10 year bond. The price of 8 year bond equals to 10 year bond, where investor prefer it. Finally, obtain the par value of 8 year bond.