Tom Cruise Lines Incorporated issued bonds five years ago at $$1,000$ per bond. These bonds had a $30$ year life when issued and

the snnual interest payment wss then $15$ percent. This return wsi in line with the required returns by bondholders as thas point ss

described below:

Assume that five years bster the inflation premium is only $3$ percent and is appropristely reflected in the required return lor yield to

msturityl of the bonds. The bonds have $25$ yesrs re msining until masturity.

Compute the new price of the bond. Use Appendix B and Appendix D for an approximste answer but cakulste your final answer

using the formuls and financial cakuktor methods.

Note: Do not round Intermedlate calculatlons. Round your final answer to $2$ decimal places. Assume Interest payments are

a$$al$.$