#2

Required Information [The following information applies to the questions displayed below.] At the beginning of his current tax year, David invests $12,430 in original Issue U.S. Treasury bonds with a $10,000 face value that mature In exactly 20 years. David recelves $800 In Interest ( $400 every six months) from the Treasury bonds during the current year, and the yleld to maturity on the bonds is 6 percent. Note: Round your Intermedlate calculations to the nearest whole dollar amount. b. How much Interest will he report this year if he does not elect to amortize the bond premium