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You are called in as a financial analyst to appraise the bondsof Olsen’s Clothing Stores. The $1,000 par value bonds have aquoted annual interest rate of 10 percent, which is paidsemiannually. The yield to maturity on the bonds is 12 percentannual interest. There are 25 years to maturity. Use Appendix B andAppendix D for an approximate answer but calculate your finalanswer using the formula and financial calculator methods.a. Compute the price of the bonds based on semiannual analysis.(Do not round intermediate calculations. Round your final answer to2 decimal places.)Bondpriceb. With 20 years to maturity, if yield tomaturity goes down substantially to 8 percent, what will be the newprice of the bonds? (Do not round intermediatecalculations. Round your final answer to 2 decimalplaces.)New bondprice