Katie Pairy Fruits Incorporated has a $1,500 16-year bond outstanding with a nominal yield of 16 percent (coupon equals 16% $1,500 = $240 per year). Assume that the current market-required interest rate on similar bonds is now only 12 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

A) Find the present value of 4 percent $1,500 (or $60) for 16 years at 12 percent. The $60 is assumed to be an annual payment. Add this value to $1,500. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.