The negative amortization of discount in period

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1. a three year $1,000 par bond has a coupon rate of 6% convertible semiannually. It is sold at a yield of 7% convertible semiannually. Find a) the price of the bond. b) the amount of discount. c) the negative amortization of discount in period 5.

2. A homeowner has a 200,000 home loan for 30 years at a nominal annual rate of 7.5% convertible monthly. Find a) her monthly payment. b)her balance after 12 years. c) the amount of interest paid in the 40th payment.

Reference no: EM131057243

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