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 $8$ percent, which is paid semiannually. The yield to maturity on the bonds is $10$ percent annual interest. There

are $15$ years to maturity. Use $A_p{?}_{?}$ pendix B and $A_p$endixDforanappro$mateanswerbutcalculateyourfinalanswerusingtheforl{a}_{?}$

and financial calculator methods.

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

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

Bond price

b$.$ With $10$ 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 intermediate calculations. Round your final answer to $2$ decimal places.

New bond price