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. Based on the receipt of the latest coupon, the corresponding amount for amortization of the premium was$300.12. Exactly one year ago, the amount for amortization of the premium was$272.74. Based on the relation between subsequent amounts for amortization of the principal, what was the original value of the premium?
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
16th edition
1337902608, 978-1337902601
