You work in the Finance Department of a large Life Insurance Company. Youre your firm is considering the purchase of the issue of a new Convertible Bond issue by the Elkco Co. You have been assigned to establish a reasonable price for these securities.

These bonds have a Face Value $1,000, mature in five years, and pay 3.50% annual coupons. They are convertible into 25 shares of stock during their life.

The firm also has a straight bond issue outstanding that has a Face Value $1,000, by chance they also mature in five years, and pay 6.75% annual coupons. These securities are currently trading for $1,064.50.

Elkcos stock is currently trading for $36.75 per share, and you feel that 0.36 is a reasonable estimate for the Sigma of the firms stock.

What is the reasonable estimated value of the Elkco convertible bonds? (The answer is in dollar, round to two decimal places, e.g. 1046.75)