Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 30-year life when issued and the annual interest payment was then 15 percent. This return was in line with the required returns by bondholders at that point as described below: Book Hint Print Real rate of return Inflation premium Risk premium Total return. 51 5 158 Assume that five years later the inflation premium is only 3 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. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.) New price of the bond 1,140.50 App " 13 13 " " " " . * " 24 AME MO T 3342 7 www 9219 GPS ENY 2912 Y 1712 ON A www App DP fanaty of P NA- +1 9 14 15 16 117 090 1970 2% " P F 76 " 2941 2721 2673 3902 35 4X2 1212 541 5243 5075 000 5386 530 30 4216 10.3 30 250 15373 09 OS 2677 2487 2403 3.346 3470 3791 4231 4111 4752 5759 1329 6450 M 140 O LAND ON 2400 1383 YOU 3336 AAS 3413 1300 SARY 4.314 4374 1964 . AFTE 4303 END 316 3421 LINE " 5447 6304 5430 430 14 SA A 139 1442 5.340 M 5319 4811 4142 5.334 48% LINE " 40 5304 3735 LINE " SAM 4379 KAW LAIR KATE AND LAM 6354 8301