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You are called in as a financial analyst to appraise the bonds of the Holtz Corporation. The $1,000 par value bonds have a quoted annual

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You are called in as a financial analyst to appraise the bonds of the Holtz Corporation. The $1,000 par value bonds have a quoted annual interest rate of 14 percent, paid semiannually. The yield to maturity on the bonds is 12 percent annually. There are 15 years to maturity. (Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. Compute the price of the bonds. Current price $ 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? New price of the bonds c. With a price of $858 what is the yield to maturity if the bond has 10 years to maturity? Yield to maturity 1%

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