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 14 percent. This return was in line with the required returns by bondholders at that point as described below: Real rate of return 4 % Inflation premium 5 Risk premium 5 Total return 14 % 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