Find the total amount paid, the total interest and the total princi- pal repaid in the amortization of Table 4.2. The bond amortization schedule for a bond purchased on a coupon date (just after the coupon is paid) is given in the following table. TABLE 4.2 Outstanding Balance Pay- K Interest Due Principal (Book Value ment Repaid after Payment) 0 P=F[1 +(r-j) an] i F[1+(r-j).4-1] Fr F[j+(r-j)(1v})] F(r-j).v) 2 F[1 + (r-j).(-2) Fr F[j+(r-j)(1-v**)] F(r-j). : : : : k F[1+(r-j).a-] Fr Flj +(r-j)(1-v-**!)] F(r-j).v-k+1 : : : : : n-1 F[1+(r-j).a] Fr F[j+(rj)(1-v})] F(r-j).v} n 0 Fr+F F[j+(r-j)(1-v;)] F[1+(r-j),v;1 Notice that since the payments are level throughout the term of the bond, except for the final payment, the principal repaid column forms a geo- metric progression with ratio 1+j. The following example illustrates a bond amortization. Find the total amount paid, the total interest and the total princi- pal repaid in the amortization of Table 4.2. The bond amortization schedule for a bond purchased on a coupon date (just after the coupon is paid) is given in the following table. TABLE 4.2 Outstanding Balance Pay- K Interest Due Principal (Book Value ment Repaid after Payment) 0 P=F[1 +(r-j) an] i F[1+(r-j).4-1] Fr F[j+(r-j)(1v})] F(r-j).v) 2 F[1 + (r-j).(-2) Fr F[j+(r-j)(1-v**)] F(r-j). : : : : k F[1+(r-j).a-] Fr Flj +(r-j)(1-v-**!)] F(r-j).v-k+1 : : : : : n-1 F[1+(r-j).a] Fr F[j+(rj)(1-v})] F(r-j).v} n 0 Fr+F F[j+(r-j)(1-v;)] F[1+(r-j),v;1 Notice that since the payments are level throughout the term of the bond, except for the final payment, the principal repaid column forms a geo- metric progression with ratio 1+j. The following example illustrates a bond amortization