Question
At the beginning of his current tax year, David invests $12,680 in original issue U.S. Treasury bonds with a $10,000 face value that mature in
At the beginning of his current tax year, David invests $12,680 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 20 years. David receives $660 in interest ($330 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 4.6 percent. (Round your intermediate calculations to the nearest whole dollar amount.)
Semiannual Period | Adjusted Basis of Bonds at Beginning of Semiannual Period
| Interest Received | Premium Amortization | Reported Interest |
1 | 12680 | 330 |
|
|
2 |
| 330 |
|
|
Yearly Total |
| 660 |
|
|
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