Question: Please show steps A $6,000 par-value bond with 7% annual coupons is purchased at a premium ten years prior to its maturity date. The proceeds

Please show steps A $6,000 par-value bond with 7% annual coupons is Please show steps

A $6,000 par-value bond with 7% annual coupons is purchased at a premium ten years prior to its maturity date. The proceeds of the coupons are invested in a savings account with a 3% annual effective rate of interest. The annual effective yield on the ten-year investment (including the bond and the savings account) is 5%. What is the amount for amortization of premium in the third coupon the investor receives? (Round your answer to the nearest cent.) A $6,000 par-value bond with 7% annual coupons is purchased at a premium ten years prior to its maturity date. The proceeds of the coupons are invested in a savings account with a 3% annual effective rate of interest. The annual effective yield on the ten-year investment (including the bond and the savings account) is 5%. What is the amount for amortization of premium in the third coupon the investor receives? (Round your answer to the nearest cent.)

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