A ten-year bond has a face value of $10,000, a face interest rate of 11 percent, an
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A ten-year bond has a face value of $10,000, a face interest rate of 11 percent, an unamortized bond premium of $400, and an effective interest rate of 10 percent. In the first semiannual interest payment period (assuming the effective interest method of amortization), the amount of premium amortization will be
A) $30.00.
B) $144.00.
C) $72.00.
d) $60.00.
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