Mel Reed calls her broker to inquire about purchasing a bond of ABC Corporation. The broker quotes a price of $1,160. Mel is concerned that the bond might be overpilced. The $1.000 par value bond pays 12 percent annual interest payable semiannually, and has 20 years remaining until maturity. The current yleld to maturity on simillar bonds is 8 percent. a. Compute the new price of the bond. (Use a Financial calculotor to arrive of the answers. Do not round intermediate calculations. Round the final answer to 2 decimal ploces.) New price of the bond b. Do you think the bond is overpriced? Yes No