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At the beginning of his current tax year, David invests $11,550 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 10 years. David receives $820 in interest ($410 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 6.2 percent.
Note: Round your intermediate calculations to the nearest whole dollar amount.
b. How much interest will he report this year if he does not elect to amortize the bond premium?
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