At the beginning of his current tax year, David invests $12,000 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 10 years. David receives $700 in interest at the end of the first year (one annual interest payment) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 5 percent. How much interest will he report if he elects to amortize the bond premium? Hint: The premium amortization can be calculated by taking the difference between the actual interest received and the interest calculated using the market rate (purchase price * yield). Numeric Response?: