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A 1 5 - year bond has annual coupons. The annual coupon starts at $ 1 5 , and decreases by $ 1 each year.

A 15-year bond has annual coupons. The annual coupon starts at $15, and decreases by $1 each year. The last coupon at the end of 15 years is $1 and the redemption value at maturity is $100. If the bond is bought to yield 7% effective per annum, compute the portion of the ninth coupon used to amortize the book value.
[Total: 6 marks]
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