Reem Design wishes to estimate the value of its outstanding 25-year bond with the following features. The annual coupon rate for the first 10 years will be 5% of the face value of $1,000. After 10 years, the annual coupon rate will increase to 8% for the remaining 15 years. What is the value of this bond, if Reem Design is rated BBB. (BBB-rated bonds are trading at a default spread of 0.75% over the Treasury bond rate of 7.00%.