You are the owner of $100$ bonds issued by Lily Inc. These bonds have $8$ years remaining to maturity,

an annual coupon payment of $$80,$ and a par value of $$1,000.$ Unfortunately, Lily Inc. is on the

brink of bankruptcy. The creditors, including yourself, have agreed to a postponement of the next

$4$ interest payments $($otherwise$,$ the next interest payment would have been due in one year$).$ The

remaining interest payments, for year $5$ through $8,$ will be made as scheduled. The postponed

payments will accrue interest at an annual rate of $6\%,$ and they will then be paid as a lump sum at

maturity $8$ years hence. The required rate of return on these bonds, considering their substantial

risk, is now $28\%.$

What is the present value of each bond $($Price today$)?(5$ points$)$