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Find the total amount paid, the total interest and the total principal repaid in the amortization of Table 4.2. chased on a coupon date The

Find the total amount paid, the total interest and the total principal repaid in the amortization of Table 4.2. image text in transcribed
chased on a coupon date The bond amortization schedule for a bond purchased on (just after the coupon is paid) is given in the following table TABLE 4.2 Pay- Interest Due Principal Repaid Outstanding Balance (Book Value ment after Payment) 0 P=F[1+(r-j).am] 1 F[1+(r-j).9,-) Fr 2 F[1+(r-j).4-2] Fr F[j+(r-j)(1-1)] F[j+(r-j)(1-v"-1)] F(r-j).v F(r-j).v1 k F[1+(r-j). 4-R] Fr F[j+(r-j)(1-v"+k+)] F(r-j)v*l n-1 F[l+(r-j)..] 0 Fr F[j+(r-j)(1-v})] Fr+F F[j+(r-)(1-v;)] F(r-j).v} F[1+(r-j).v;] Notice that since the payments are level throughout the term of the bond, except for the final payment, the principal repaid column forms a geo- chased on a coupon date The bond amortization schedule for a bond purchased on (just after the coupon is paid) is given in the following table TABLE 4.2 Pay- Interest Due Principal Repaid Outstanding Balance (Book Value ment after Payment) 0 P=F[1+(r-j).am] 1 F[1+(r-j).9,-) Fr 2 F[1+(r-j).4-2] Fr F[j+(r-j)(1-1)] F[j+(r-j)(1-v"-1)] F(r-j).v F(r-j).v1 k F[1+(r-j). 4-R] Fr F[j+(r-j)(1-v"+k+)] F(r-j)v*l n-1 F[l+(r-j)..] 0 Fr F[j+(r-j)(1-v})] Fr+F F[j+(r-)(1-v;)] F(r-j).v} F[1+(r-j).v;] Notice that since the payments are level throughout the term of the bond, except for the final payment, the principal repaid column forms a geo

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