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3. There is a bond on a companys books with an original term of 10 years that was purchased for a premium at its issuance,
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| There is a bond on a companys books with an original term of 10 years that was purchased for a premium at its issuance, just over 2 years ago. The bond pays semi-annual interest. With the receipt of the latest coupon, the corresponding amount for amortization of the premium was $129.61. Exactly one year ago, the amount for amortization of the premium was $123.12. Based on the relation between subsequent amounts for amortization of the principal, what was the original value of the premium? |
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Fundamentals Of Investments Valuation And Management
Authors: Bradford D Jordan, Thomas W. Miller Jr., Steven D. Dolvin
6th Edition
0073530719, 9780073530710
