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 9 percent, whih is paid semiannually. The yield to maturity on the bonds is 10 percent annual interest. There are 20 years to maturity. Use appendix B and Appendix D for an approximate answer but calulate your final answer using the formula and finanial calculator methods.

a. Compute the price of the bonds based on semiannual analysis. (Do not round intermediate calcculations. Round your final answer to 2 decimal places.)

Bond Price $_____________

b. With 15 years maturity, if yield to maturity goes down substantially to 8 percent, what will be the new price of the bonds? (Do not round intermediate calculations. Round your finanl answer to 2 decimal places.)

New Bond Price $_______________