Question: practice how I can solve this problem please step by step to this sample example understand then i can do well in class. calculate coupon
practice how I can solve this problem please step by step to this sample example understand then i can do well in class.
- calculate coupon interest payment, total interest schedule, and total debt service schedule.
| Panel A: Basic Bond Issue Characteristics | ||||
| Bond Series | A | B | C | D |
| Face Value | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Coupon Rate | 3.0% | 3.1% | 3.2% | 3.3% |
| Maturity (years) | 1 | 2 | 3 | 4 |
Question 1: total interest in semiannual period 1
Question 2: total interest in semiannual period 2
Question 3: total interest in semiannual period 3
Question 4: total interest in semiannual period 4
Question 5: total interest in semiannual period 5
Question 6: total interest in semiannual period 6
Question 7: total interest in semiannual period 7
Question 8: total interest in semiannual period 8
Question 9: total interest for the sum of the 8 periods
Question 10: total debt service in semiannual period 1
Question 11: total debt service in semiannual period 2
Question 12: total debt service in semiannual period 3
Question 13: total debt service in semiannual period 4
Question 14: total debt service in semiannual period 5
Question 15: total debt service in semiannual period 6
Question 16: total debt service in semiannual period 7
Question 17: total debt service in semiannual period 8
Question 18: total debt service for the sum of the 8 periods
| Panel B: Semiannual Interest Payments and Total Debt Service | ||||||
|
Semiannual period | Coupon interest payment ($$) | Total interest |
Total debt service | |||
| Series A | Series B | Series C | Series D | |||
| 1 | [Question 1] | [Question 10] | ||||
| 2 | [Question 2] | [Question 11] | ||||
| 3 | [Question 3] | [Question 12] | ||||
| 4 | [Question 4] | [Question 13] | ||||
| 5 | [Question 5] | [Question 14] | ||||
| 6 | [Question 6] | [Question 15] | ||||
| 7 | [Question 7] | [Question 16] | ||||
| 8 | [Question 8] | [Question 17] | ||||
| Total | [Question 9] | [Question 18] | ||||
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