7. On 31 March 2003, Hind Tobacco Company issued *1,000 face value bonds due on 31 March 2013. The company will not pay any interest on the bond until 31 March 2008. The half-yearly interest is payable from 31 December 2008; the annual rate of interest will be 12 per cent. The bonds will be redeemed at 5 per cent premium on maturity. What is the value of the bond if the required rate of return is 14 per cent?