A US treasury bond was issued today with a maturity of 30 years, face amount of $1000, redeemable at par, coupon rate of 2% convertible semiannually. The 30-year treasury yield today is at 1.2% convertible semiannually. Using the information above, answer the next four questions:

a. Without calculation, is the bond priced with a premium or a discount and why? Then, calculate the value of premium / discount.

b. Calculate the book value of the bond right after the 9th coupon payment.

c. Calculate the amount of amortization of premium / accumulation of discount in the 15th coupon payment.

d. Calculate the amount of interest in the 24th coupon payment.