Question: Can someone please help me with this problem? Attached is an example to help. Thanks in advanced! Question 3 1 pts 3. A 1000 par
Can someone please help me with this problem? Attached is an example to help. Thanks in advanced!

Question 3 1 pts 3. A 1000 par value 34-year bond with annual coupons is bought to yield an annual effective rate of 3.5%. The amount for amortization of premium in year 12 is 18. The book value of the bond at the end of year 12 is X. Calculate X. (7.c #05) A 1000 par value 20-year bond with annual coupons is bought to yield an annual effective rate of 7.5%. The amount for amortization of premium in year 15 is 24. The book value of the bond at the end of year 15 is X. Calculate X. [7.c #05] A) 1602B) 1525 C) 1551 D) 1577 E) 1628 Let K = coupon amount. Given info: 0 P = Ka 37/3.5% + 1000 V 34 Piz = (K-35) v23 = 18 Biz = x 0 1131 O 1168 01205 From : (K-35) 123 = 18 K = 74.71 0 1187 0 1150 so, Bi = 74.71 9 2713.5% +1000 vc - 1602.29) Question 3 1 pts 3. A 1000 par value 34-year bond with annual coupons is bought to yield an annual effective rate of 3.5%. The amount for amortization of premium in year 12 is 18. The book value of the bond at the end of year 12 is X. Calculate X. (7.c #05) A 1000 par value 20-year bond with annual coupons is bought to yield an annual effective rate of 7.5%. The amount for amortization of premium in year 15 is 24. The book value of the bond at the end of year 15 is X. Calculate X. [7.c #05] A) 1602B) 1525 C) 1551 D) 1577 E) 1628 Let K = coupon amount. Given info: 0 P = Ka 37/3.5% + 1000 V 34 Piz = (K-35) v23 = 18 Biz = x 0 1131 O 1168 01205 From : (K-35) 123 = 18 K = 74.71 0 1187 0 1150 so, Bi = 74.71 9 2713.5% +1000 vc - 1602.29)
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