A bond of face amount 100 is purchased at a premium of 36 to yield 7%. The amount for amortization of premium in the 5th coupon is 1.00. What is the term of the bond?
I have no clue where to start really. I feel a part of that is the wording. I'm not sure how to interpret "The amount for amortization of premium in the 5th coupon is 1.00.". I'm assuming the first sentence means that the price of the bond is 136 and the yield to maturity is 7%. But yeah any help with explaining what the question is asking or help with the question in general would be greatly appreciated.