Question 24 You are called in as a financial analyst to appraise the bonds of the Seneca Corporation. The $1,000 par value bonds have a quoted annual interest rate of 10 percent, paid semiannually. The yield to maturity on the bonds is 12 percent annually. There are 15 years to maturity. a) Compute the price of the bonds. (5 marks) b) With 10 years remaining to maturity, if yield to maturity goes down substantially to 8 percent, what will be the new price of the bonds? (5 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I U Paragraph Arial V V 10pt EE x X S & T >ITT . + 18 lili. : 3 MM r+1 on 6 * Ka