Martin Shipping Lines issued bonds $10$ years ago at $$1,000$ per bond. The bonds had a $30-$year life when issued, with semiannual payments at the then annual rate of $10$ percent. This return was in line with required returns by bondholders at that point, as described below:

Real rate of return $2\%$

Inflation premium $4$

Risk premium $4$

Total return $10\%$

Assume that today the inflation premium is only $2$ percent and is appropriately reflected in the required return $($or yield to maturity$)$ of the bonds.

Compute the new price of the bond. $($Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Round the final answer to $2$ decimal places.$)$

New price of the bond $

$1260$