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%.

Assuming the coupon rate is payable at the end each year....therefore,

Price= 0.08*2000{ (1.06)^-1 +(1.06)^-2 + (1.06)^-3 + (1.06)^-4 +(1.06)^-5} + 2000*(1.06)^-5