Wilson oil company issued bonds 5 years ago at a $1000 per bond. These bonds had a 25 year life when issued at the annual interest payment was then 15%. This return was in line when the required returns by bonholders at the point in time as described below.

Real rate of return	8%
Inflation premium	3
Risk return	4
Total return	15%

Assume that 10 years later due to bad publicity the risk premium is now 7% and appropriately reflected in the required return or yield to maturity of the bonds. the bonds have 15 years remaining until maturity.

Compute the new price of the bond calculate your final answer using the formula and financial calculator methods. Do not round immediate calculations round your final answer to 2 decimal places. Assume interest payments are annual.

New price$______