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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

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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 11 percent, which is paid semsannually. The yleid to matunity on the bonds is 12 percent annual interest There are 10 years to maturty. Use Appendix A and A ARendix. D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Compute the pnce of the bonds based on semiannual analysis Note: Do not round intermedlate calculotions. Round your final answer to 2 decimal places. Answer is complete but not entirely correct. b. With 5 years to maturity, if yleld to maturity goes down substantialy to 10 percent, whot wil be the new price of the bonds? Note: Do not round intermediete colculations. Round your finsl enswer to 2 decimal ploces. Appendix B Nrventzelur of II. BVI pY=FVT1n=) Pj=1+(1)(1+1)E)

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