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Padme purchases a $25000 face value bond with 5 years left to maturity and a coupon rate of 7.05%. The current interest rate is 7.15%.

Padme purchases a $25000 face value bond with 5 years left to maturity and a coupon rate of 7.05%. The current interest rate is 7.15%.

a) When she buys the bond, will it be at a premium or at a discount?

b) Construct the amortization table for the bond.

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