You are called in as a financial analyst to appraise the bonds of Denver Savings and Loan Corporation. The $1,000 par value bonds have a quoted annual interest rate of 13%, which is paid semiannually. The yield to maturity on the bonds is 10% annual interest. There are 20 years to maturity. (1) Calculate the price of the bonds today. (2 Marks) (ii) On the theoretical ground, if the yield to maturity for a 15-year maturity bond goes down significantly, what should happen to the price of the bonds? (1 Mark)