Coupon rate 9% Half Yearly

Time 4 Yearly
Face value 100000
Coupon Payment Yearly 9000
Coupon Rate half yearly 4500

Issue date 1-Jan-11

Maturity Face 100000
Coupon rate 9% Market Rate
Coupon Payment Semi Annually
Premium price 104100
Premium 4100

1-Jan-11
1-Jul-11
1-Jan-12
1-Jul-12
1-Jan-13
1-Jul-13
1-Jan-14
1-Jul-14
1-Jan-15
1-Jul-15
1-Jan-16

1-Jan-11
1-Jul-11
1-Jan-12
1-Jul-12
1-Jan-13
1-Jul-13
1-Jan-14
1-Jul-14
1-Jan-15
1-Jul-15
1-Jan-16
 100000
100000

8%

EFFECTIVE INTEREST PAYMENT

Coupon payment Interest payment Amortization of premium Premium Balance Premium Price
4100 104100
4500 4164 336 3764 103764
4500 4151 349 3415 103415
4500 4137 363 3052 103052
4500 4122 378 2674 102674
4500 4107 393 2281 102281
4500 4091 409 1872 101872
4500 4075 425 1447 101447
4500 4058 442 1005 101005
4500 4040 460 545 100545
4500 4022 478 67 100067

STRAIGHT LINE METHOD

Coupon payment Interest payment Amortization of premium Premium Balance Premium Price
4100 104100
4500 4090 410 3690 103690
4500 4090 410 3280 103280
4500 4090 410 2870 102870
4500 4090 410 2460 102460
4500 4090 410 2050 102050
4500 4090 410 1640 101640
4500 4090 410 1230 101230
4500 4090 410 820 100820
4500 4090 410 410 100410
4500 4090 410 0 100000
Zero coupon Bond
Face Value 100000
Rate 10% Rate Semi Annually
time 5
Semi annual periods 10

Present Value 62092

EFFECTIVE INTEREST METHOD

Semi Annual Interest Date Coupon PaymInterest Expense
1/1/2011
7/1/2011 3105
1/1/2012 3260
7/1/2012 3423
1/1/2013 3594
7/1/2013 3774
1/1/2014 3962
7/1/2014 4160
1/1/2015 4368
7/1/2015 4586
1/1/2016 3676

STRAIGTH LINE METHOD

Semi Annual Interest Date Coupon PaymInterest Expense
1/1/2011
7/1/2011 0 3791.00
1/1/2012 0 3791.00
7/1/2012 0 3791.00
1/1/2013 0 3791.00
7/1/2013 0 3791.00
1/1/2014 0 3791.00
7/1/2014 0 3791.00
1/1/2015 0 3791.00
7/1/2015 0 3791.00
1/1/2016 0 3791.00
 5.00%

VE INTEREST METHOD
Premium Amortozation Preium Balance Bond Value
37908 62092
3105 34803 65197
3260 31543 68457
3423 28120 71880
3594 24526 75474
3774 20752 79248
3962 16790 83210
4160 12630 87370
4368 8262 91738
4586 3676 96324
3676 0 100000

IGTH LINE METHOD

Premium Amortozation Preium Balance Bond Value
37908 62092
3791.00 34117.00 65883.00
3791.00 30326.00 69674.00
3791.00 26535.00 73465.00
3791.00 22744.00 77256.00
3791.00 18953.00 81047.00
3791.00 15162.00 84838.00
3791.00 11371.00 88629.00
3791.00 7580.00 92420.00
3791.00 3789.00 96211.00
3791.00 -2.00 100002.00
Face Value of 100000 BondValue
coupon Rate 9%
Market rate 8%
Time 5 years
Date 1-Jan-11
c= 9000

EFFECTIVE INTEREST METHOD

Semi Annual Interest Date Coupon Payment Interest Expense

1-Jan-11 4500 4162

1-Jul-11 4500 4149
31-Dec-11 4500 4135
1-Jul-12 4500 4120
31-Dec-12 4500 4105
2-Jul-13 4500 4089
1-Jan-14 4500 4073
3-Jul-14 4500 4056
2-Jan-15 4500 4038
4-Jul-15 4500 4019
3-Jan-16 4500 4000

Semi Annual Interest Date Coupon Payment Interest Expense

1/1/2011 4500 4094.5

7/1/2011 4500 4094.5
12/31/2011 4500 4094.5
7/1/2012 4500 4094.5
12/31/2012 4500 4094.5
7/2/2013 4500 4094.5
1/1/2014 4500 4094.5
7/3/2014 4500 4094.5
1/2/2015 4500 4094.5
7/4/2015 4500 4094.5
1/3/2016 4500 4094.5
 104055 Face Value of share
coupon Rate
Market rate
Time
Date
c=

INTEREST METHOD
Premium Amortization Premium balance Bond carrying value
4055 104055
-338 3717 103717
-351 3366 103366
-365 3001 103001
-380 2621 102621
-395 2226 102226
-411 1815 101815
-427 1388 101388
-444 944 100944
-462 482 100482
-481 1 100001
-500 -499 99501

Premium Amortization Premium balance Bond carrying value

4055 104055
405.5 3649.5 103649.5
405.5 3244 103244
405.5 2838.5 102838.5
405.5 2433 102433
405.5 2027.5 102027.5
405.5 1622 101622
405.5 1216.5 101216.5
405.5 811 100811
405.5 405.5 100405.5
405.5 0 100000
405.5 -405.5 99594.5
 100000 BondValue 96139
9%
10%
5 years
1-Jan-11
9000

Semi Annual Interest Date Coupon Payment Interest Expense Premium Amortization

1-Jan-11 4500 4807 -307

1-Jul-11 4500 4823 -323
31-Dec-11 4500 4839 -339
1-Jul-12 4500 4856 -356
31-Dec-12 4500 4874 -374
2-Jul-13 4500 4892 -392
1-Jan-14 4500 4912 -412
3-Jul-14 4500 4933 -433
2-Jan-15 4500 4954 -454
4-Jul-15 4500 4977 -477
3-Jan-16 4500 5001 -501

Semi Annual Interest Date Coupon Payment Interest Expense Premium Amortization
1/1/2011
7/1/2011 4500 4885 385
12/31/2011 4500 4885 385
7/1/2012 4500 4885 385
12/31/2012 4500 4885 385
7/2/2013 4500 4885 385
1/1/2014 4500 4885 385
7/3/2014 4500 4885 385
1/2/2015 4500 4885 385
7/4/2015 4500 4885 385
1/3/2016 4500 4885 385
Premium balance Bond carrying value
3861 96139
3554 96446
3231 96769
2892 97108
2536 97464
2162 97838
1770 98230
1358 98642
925 99075
471 99529
-6 100006
-507 100507

Premium balance Bond carrying value

3851 96139
3466 96524
3081 96909
2696 97294
2311 97679
1926 98064
1541 98449
1156 98834
771 99219
386 99604
1 99989