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Tom Cruise Lines incorporated issued bonds five years ago at $1,000 per bond. These bonds...

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Accounting

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Tom Cruise Lines incorporated issued bonds five years ago at $1,000 per bond. These bonds had a 30 -year ilfe 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: Assume that five years later the innation premium is only 3 percent and is appropriately reflected in the required return (or yleid to maturty) of the bonds. The bonds have 25 years remaining until maturtty. Compute the new price of the bond. Use Appendix B and ADpendixD for an approximate answer but caiculate your final answer using the formula and financial calculator methods. Note: Do not round Intermedlate calculations. Round your final answer to 2 decimal places. Assume interest payments ore onnual

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