how do we find the $51.77 from the effective interest rate and ($8.23) from the change in amortization cost?

Amortization Exercise 4 year bond, coupon 6%, Face $1000. Mkt Rate 5% Date Cash Int Eff. Int Change in Amortized Cost Amortization Amount Purchased on Jan 1, 2001 $1,035.46 Dec 31, 2001 60 $51.77 ($8.23) $1,027.23 Dec 31, 2002 60 $51.36 ($8.64) $1,018.59 60 $50.93 ($9.07) $1,009.52 Dec 31, 2004 60 $50.48 ($9.52) $1,000.00 Cash Int Income 51.77 Premium on bonds 8.23 Cash 1035 Investment in Bonds 1000 Premium on bonds investment 35.46 * Amortized cost is the same as the market value of bond, only if mkt rate remain constant. But mkt rate will never remain constant throughout the life of the bond Copyright 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without prior written consent of McGraw-Hill Education