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 7 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	3
Total return	9	%

Assume that today the inflation premium is only 1 percent and is appropriately reflected in the required return (or yield to maturity) of the bonds.

Compute the new price of the bond