Question: please help! You are called in as a financial analyst to appraise the bonds of Olsen's Clothing Stores. The $ 1 , 0 0 0

please help!
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 12 percent, which is paid semiannually. The yield to maturity on the
bonds is 12 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.
Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.
Bond price
b. With 20 years to maturity, if yield to maturity goes down substantially to 8 percent, what will be the new price of
the bonds?
Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.
New bond price
please help! You are called in as a financial analyst to

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