Tom Cruise Lines Incorporated issued bonds five years ago at $$1,000$ per bond. These bonds had a $25-$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:

$\backslash$table$[[$Real rate of return,$48],[$Inflation premium,$6],[$Risk premium,$5],[,$ Total return,$158]]$

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 $20$ 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 $2$ decimat places. Assume interest paymenls are annual.

New price of the bond