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 $10$ percent, which is paid semiannually. The yield to maturity on the bonds is $12$ percent annual interest. There are $25$ years to maturity. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Compute the price of the bonds based on semiannual analysis.

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places.

bWith $20$ years to maturity, if yield to maturity goes down substantially to $8$ percent, what will be the new price of the bonds