At the beginning of his current tax year David invests $12,000 in original issue U.S. Treasury bonds

Question:

At the beginning of his current tax year David invests $12,000 in original issue U.S. Treasury bonds with a $10,000 that mature in exactly 10 years. David receives $700 in interest ($350 every six months) from the Treasury bonds during the current year and the yield to on the bonds is 5 percent.
a. How much interest income will he report this year if he elects to amortize the bond premium?
b. How much interest will he report this year if he does not elect to amortize the bond premium?
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...