Jim Busby calls his broker to inquire about purchasing a bond of Disk Storage Systems. His broker quotes a price of $$1,150.$ Jim is concerned that the bond might be overpriced based on the facts involved. The $$1,000$ par value bond pays $15$ percent interest, and it has $20$ years remaining until maturity. The current yield to maturity on similar bonds is $13$ percent.

a$.$ Calculate the present value of the bond. $($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