Tom Cruise Lines Inc. issued bonds five years agao at $1,000 per bond. These bonds had a 25-year life when issued and the annual interest payment was then 15%. This return was in line with the required returns by bondholders at that point as described next:

Real rate of return	4%
Inflation premium	6%
Risk premium	5%
Total return	15%

Assume that five years later the inflation permium is only 3% and is approperately reflected in the required return (or yield to maturity) of the bonds. The bonds have 20 years remaining until maturity. Compute the new price of the bond.