Anton is pleased with your portfolio analysis. However, he believes that the portfolio would benefit from adding another stock and bond. After conducting extensive research, he has narrowed down his choices to the preference shares issued by the Royal Bank of Canada (BC) and the 10-year Commonwealth government bonds. RBC's preference shares pay a constant dividend of $7 per share per annum indefinitely, with the first dividend being paid exactly one year from today. The required return is 8.5% p.a, compounded annually. The 10-year commonwealth government bond has a face value of $100,000 which will mature in 10 years. This means that the bondholder will receive $100,000 upon presenting the bond to the Government Treasury in 10 years. The bond also pays reqular coupons of $3000 every six months over the next 10 years (i.e. 20 payments in total), with the first coupon being paid exactly 6 months from today. The required return is 6.5% p.a, compounded semi-annually. Anton would like to know the intrinsic (fair) value of these financial instruments. He remembers from a first-year corporate finance course at UNSW that the intrinsic value of a financial instrument is the present value of its future cash flows discounted at the required return. Suppose Anton purchased the shares today. Calculate the current intrinsic value of one preference share issued by RBC.