What is a bond amortization schedule? How can we construct a bond amortization schedule? How it does work? Why do we amortize a bond? What is a book value?
What is the amortization of premium? or discount?
An example: A $1000 par value five-year bond with a coupon rate of 10% payable semiannually and redeemable at par is bought to yield 12% convertible semiannually.
Please construct for me a bond amortization schedule table showing on the table the columns of Period, coupon, Interest earned, Principal adjustment, Book value, all showing with formulas how to calculate. Is the principal amount same as premium? What is a premium of a bond?
Please explain me all terms and example in details,