answers:

a) 8.35

b) 48739.29

*please no excel, this is for actuarial financial mathematics, thank you*

1. (a) A 30-year 7% annual-coupon bond with a face value of $1,000 is purchased at a yield of 12.5%. Find the amount of the accumulation of discount during the 15th year of the bond. (b) A fifteen-year bond, which was purchased at a premium, has semiannual coupons. The amount for amortization of the premium in the second coupon is $977.19 and the amount for amortization of premium in the fourth coupon is $1,046.79. Find the amount of the premium. 1. (a) A 30-year 7% annual-coupon bond with a face value of $1,000 is purchased at a yield of 12.5%. Find the amount of the accumulation of discount during the 15th year of the bond. (b) A fifteen-year bond, which was purchased at a premium, has semiannual coupons. The amount for amortization of the premium in the second coupon is $977.19 and the amount for amortization of premium in the fourth coupon is $1,046.79. Find the amount of the premium