Jim Busby calls his broker to inquire about purchasing a bond of Disk Storage Systems. His broker quotes a price of $1180. Jim is concerned that the bond might be overpriced based on the facts involved. The $1,000 par value bond pays 10 percent interest, and it has 19 years remaining until maturity. The current yield to maturity on similar bonds is 8 percent. a. Calculate the present value of the bond. Use Appendix Band Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual) Present value b. Do you think the bond is overpriced? Yes No