You receive a call from your broker to offer you a new bond whose par value is $ 1,000, has a maturity of 14 years and an annual interest rate of 9%. This bond is being sold to you for $ 1,100. The required market return for a comparable bond at risk is 10%.

Determine the price of the bond (intrinsic value) using the data provided. It should show the entire procedure. File your answer to two decimal places. Would you buy the bond at the original price your broker sold it for? Explain your answer