Michael owns a 5,000 par value 10% bond with semi-annual coupons.

The bond will mature at the end of ten years at par.

At issue, he sells the 10% bond and uses the proceeds to buy an 8% bond with

semi-annual coupons which matures at par at the end of six years.

Current yield rates are 6% convertible semi-annually.

Determine the par value of the six-year bond.

1. 5,000
2. 5,215
3. 5,545
4. 5,900
5. 6,035