1000 par value 5 year bond with 8% semiannual coupons was boughtto yield 7.5% convertible semiannually. Determine the amount of premiumamortized in the six

$2.08

Explanation:

First calculate the price of the bond

Price of the bond = [ ( 1000 x 8% x 6/12 ) x ( ( 1 - ( 1 + (7.5%x6/12) )^-(5x2) )/(7.5%x6/12) ] + { 1000 / (7.5%x6/12) ]

Price of the bond = $1,020.53

Now calculate the premium

Premium on the bond = Price of the bond - Face value of the bond = $1,020.53 - $1,000 = $20.53

Now prepare the amortization schedule to calculate the premium amortization in 6th payment.

The amortization schedule is attached with this answer please find that.

Hence, In the sixth payment the premium amortization is $2.08

no, a company likes to look at potential employees that are professional, well mannered, clean, honest, etc. don't show up looking/acting like a clown. (unless that's your job xd) hope this ! =^-^=

start by isolating the variable on one side by adding 43w^2 to both sides.   the equation will read:

25w^2+5=0

*subtract 5 from both sides*

25w^2=-5

*divide both sides by 25*

w^2=-1/5

*take the square root of both sides*

w=√(-1/5)

the square root of -1 is i.   the square root of 5 remains √5

the answer is i/√5.

hope this