The initial proceeds per bond, the size of the issue, the initial maturity of the bond, and the years remaining to maturity are shown in the following table for a number of bonds. In each case, the...

Solution 13-1:
a) Bond A: $985 < $1,000 Discount = $15
Bond B: $1,025 > $1,000 Premium = $25
Bond C: $1,000 = $1,000 par
Bond D: $960 < $1,000 Discount = $40
Bond E: $1,035 > $1,000 Premium = $35
b) Total Premium/discount = Premium/discount per bond x Size of issue
Bond A
Total Discount = ($1,000 - $985) x 10,000 bonds
= $150,000
Bond B
Total Premium = ($1,025 - $1,000) x 20,000 bonds
= $500,000
Bond C
Total Discount/premium = ($1,000 - $1,000) x 22,500 bonds
= $0
Bond D
Total Discount = ($1,000 - $960) x 5,000 bonds
= $200,000
Bond E
Total Premium = ($1,035 - $1,000) x 10,000 bonds
= $350,000
c) Annual premium/discount amortized per bond = Prem/disc...