1. A $2,000 bond is redeemable at a coupon rate of 6.5% in 10 years. Would you purchase it at premium or discount price if you want it to yield 8%?
2. A bond has a face value of $2,000 redeemable in 5 years at a coupon rate of 8%. Construct the premium amortization schedule if the bond is to be purchased to yield 6%