You are called in as a financial analyst to appraise the bonds of Olsen's Clothing Stores. The $$1,000$ par value bonds have a quoted

annual interest rate of $9$ percent, which is paid semiannually. The yield to maturity on the bonds is $10$ percent annual interest. There

are $20$ years to maturity. Use A ppendix B and A ppendix $D$ for an approximate answer but calculate your final answer using the formula

and financial calculator methods.

a$.$ Compute the price of the bonds based on semiannual analysis.

Note: Do not round Intermedlate caleulations. Round your flnol answer to $2$ decimal places.

Bond price

b$.$ With $15$ years to maturity, if yield to maturity goes down substantially to $8$ percent, what will be the new price of the bonds?

Note: Do not round Intermedlate calculatlons. Round your flnal answer to $2$ decimal places.

New bond price