Question: Please show the step by step solution. Do not skip steps. Problem # 3 : There is a bond on a company's books with an

Please show the step by step solution. Do not skip steps.
Problem #3: 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. With the receipt of the latest coupon, the
corresponding amount for amortization of the premium was $225.62. Exactly one year ago, the amount for
amortization of the premium was $208.20. Based on the relation between subsequent amounts for amortization of
the principal, what was the original value of the premium?
 Please show the step by step solution. Do not skip steps.

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