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Jim Busby calls his broker to inquire about purchasing a bond of Disk Storage Systems. His broker quotes a price of $1,130. Jim is concerned

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Jim Busby calls his broker to inquire about purchasing a bond of Disk Storage Systems. His broker quotes a price of $1,130. Jim is concerned that the bond might be overpriced based on the facts involved. The $1,000 par value bond pays 13 percent interest, and it has 18 years remaining until maturity. The current yield to maturity on similar bonds is 11 percent. Note: Do not input a dollar sign. Round your final answer to 2 decimal places. For answers in the thousands, input a comma. a. Calculate the new price of the bond. b. Do you think the bond is overpriced? (Yes/No)

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