Determine the interest portion of the third payment

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Reference no: EM132028579

1. A $100 par value 10-year bond provides coupons at 5% convertible semiannually. The yield rate is 4% convertible semiannually. What is the flat price 8.4 years after issue at the same yield rate (assuming compound interest)?

2. A loan is being repaid in five annual payments. The first two payments are $200. The third and fourth payments are $400. The final payment is $500. The annual effective rate of interest is 6%. Determine the interest portion of the third payment.

Reference no: EM132028579

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