Question 7 Mr Conner calls his broker to inquire about purchasing a bond of Tesla Corporation. His broker quotes a price of $1,100. Mr Conner is concerned that the bond might be overpriced based on the facts involved. The $ 1,000 par value bond pays 11 percent interest, and it has 14 years remaining until maturity. The required rate of return on this bond is 9 percent. Do you think the bond is overpriced? Show all the relevant workings. (7 marks) Question 8 Bonds issued by Fresh Farm Company have a par value of $1,000, which is also the amount of principal to be paid at maturity. The bonds are currently selling for $850. They have 10 years remaining to maturity. The annual interest payment is 8 percent. Compute the yield to maturity of the bonds. (5 marks)