An investor owns a 3000$ par-value 12% bond with semiannual coupons. The bond will mature at par at the end of fourteen years. The investor decides that a ten-year bond would be preferable. Current yield rates are 6% convertible semiannually. The investor uses the proceeds from the sale of the 12% bond to purchase an 8% bond with semiannual coupons, maturing at par at the end of ten years. Find the face value of the 8% bond. Price of 8% bond = Semiannual coupon amount * PVAF(3%, 20 periods) + Maturity amount * PVAF(3%, 20 periods) or, 4688.77 = 0.04X * 14.877475 + X * 0.553676 or, 4688.77 = 0.595099X + 0.553676X or, 1.148775X = 4688.77 or, X = 4688.77/1.148775 or, X = 4081.54 where is 0.553676 coming from? post step by step calculations to get 0.553676