You are called in as a financial analyst to appraise the bonds of Olsens Clothing Stores. The

Question:

You are called in as a financial analyst to appraise the bonds of Olsen’s Clothing Stores. The $1,000 bonds have a quoted annual interest rate of 10 percent, which is paid semiannually. The yield to on the bonds is 10 percent annual interest. There are 15 years to Compute the price of the bonds based on semiannual analysis.
b. With 10 years to if yield to goes down substantially to 8 percent, what will be the new price of the bonds?

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...