A $10,000 bond is redeemable for $10,500.The absolute value of the last two write-down values (the last two values in the Book Value Adjustment column)are P_n_-1 = 64.50 and P_n = 67.08 respectively.What is the last value in the Interest on the Book Value column,I_n?

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The last value in the Interest on the Book Value column, I_n, is calculated by subtracting the last write-down value P_n from the second last write-down value P_n-1. Therefore, I_n = 67.08 - 64.50 = 2.58. Since the bond is redeemable for $10,500, the interest is calculated on the book value of $10,000, so I_n = $10,000 * 0.0258 = $258. The closest option to this calculation is $422.68, which suggests an error in the provided options or additional context is needed.

A $10,000 Bond Is Redeemable for $10,500