MetaMedia Bias Incorporated issued bonds $10$ years ago at $$1,000$ per bond. These bonds had a $35-$year life when issued and the annual interest payment was then $10$ percent. This return was in line with the required returns by bondholders at that point in time as described below:

Real rate of return $2\%$

Inflation premium $4$

Risk premium $4$

Total return $10\%$

Assume that $10$ years later, due to good publicity, the risk premium is now $2$ percent and is appropriately reflected in the required return $($or yield to maturity$)$ of the bonds. The bonds have $25$ years remaining until maturity.

Compute the new price of the bond. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places. Assume interest payments are annual.