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2. The following shows the information of a government bond traded in the secondary market. Type of Bond Government bond Issue Date May 16, 2006
2. The following shows the information of a government bond traded in the secondary market.
Type of Bond Government bond
Issue Date May 16, 2006
Maturity Date May 16, 2016
Face Value $100
Redemption Value $108
Coupon Rate 5% payable semiannually
Yield Rate 8% convertible semiannually
Construct the bond amortization schedule for year 5 and year 6 (i.e., for the 9th coupon through the 12th coupon).
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