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 annual interest payment was then $15$ percent. This return was in line with the required returns by bondholders at that point as described below:

Real rate of return $5\%$

Inflation premium $6$

Risk premium $4$

Total return $15\%$

Assume that five years later the inflation premium is only $2$ 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.

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places. Assume interest payments are annual.