You are called in as a financial analyst to appraise the bonds of Olsens 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 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. a. Compute the price of the bonds based on semiannual analysis. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

b. With 20 years to maturity, if yield to maturity goes down substantially to 10 percent, what will be the new price of the bonds? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

You are called in as a financia analyst lux appraise the boril sof Olster's Cicllhing Slores The $1,000 par value bonies have quolehdannual illettest rate of percerl, his psti: semanrilully Ttte yield la malurity on borits is 10 prercent atinual iile rest There are 25 years maturity. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods Computc thc prcc of thc bonds bascd on scmannual analy3s. (Do not round intermediate calculations, Round you nal answer to 2 dec mal places. Bond price b. Wth 20 years to maturity. If yield to maturity goes down substantially to 10 percent, What wil be the new price of the bonds? (Do not round Intermediate calculations. Round your final answe to 2 decimal places. New bond price