Calculate the amount of interest in the third coupon


Suppose a 2 year bond with F = C = 1000, and a nominal annual coupon rate convertible semi annually of 10% is purchased at a price to yield 8% convertible semiannually .(a) Calculate the price of the bond using the basic formula, and the premium/discount formula. (b) Calculate the BV after 1 year (2 terms). (c) Calculate the amount of interest in the third coupon. (d) Calculate the amount of amortization of premium in the third coupon.

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Financial Management: Calculate the amount of interest in the third coupon
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