Question
There is a bond on a company's books with an original term of 10 years that was purchased for a premium at its issuance, just
There is a bond on a company's books with an original term of 10 years that was purchased for a premium at its issuance, just over 2 years ago. The bond pays semi-annual interest. With the receipt of the latest coupon, the corresponding amount for amortization of the premium was$573.20. Exactly one year ago, the amount for amortization of the premium was$537.16. Based on the relation between subsequent amounts for amortization of the principal, what was the original value of the premium?
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Practical Financial Management
Authors: William R. Lasher
8th edition
1305637542, 978-1305887237, 1305887239, 978-1305637542
