There is a bond on a companys books with an original term of 10 years that was
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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 $206.00. Exactly one year ago, the amount for amortization of the premium was $188.28. Based on the relation between subsequent amounts for amortization of the principal, what was the original value of the premium?
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
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