Answered: A fifteen-year bond, which was purchased at a premium, has semiannual coupons. The amount for amortization of the premium in the second coupon is $977.19 and…

Essentials Of Investments

11th Edition

ISBN: 9781260013924

Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher: Mcgraw-hill Education,

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Question

A fifteen-year bond, which was purchased at a premium, has semiannual coupons. The amount for
amortization of the premium in the second coupon is $977.19 and the amount for amortization of premium in
the fourth coupon is $1,046.79. Find the amount of the premium.

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A fifteen-year bond, which was purchased at a premium, has semiannual coupons. The amount for amortization of the premium in the second coupon is $977.19 and the amount for amortization of premium in the fourth coupon is $1,046.79. Find the amount of the premium.

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