Jim Busby calls his broker to inquire about purchasing a bond of Disk Storage Systems. His broker quotes a price of $$1,170.$ Jim is concerned that the bond might be overpriced based on the facts involved. The $$1,000$ par value bond pays $15$ percent interest, and it has $18$ years remaining untll maturity. The current yleld to maturity on similar bonds is $13$ percent.

a$.$ Calculate the new price of the bond. Use Appendix $B$ and Appendix $D$ for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Note: Do not round Intermedlate calculations. Round your final answer to $2$ decimal places. Assume Interest payments are annual.

New price of the bond

b$.$ Do you think the bond is overpriced?

No

Yes