Partially Amortized Bond with a balloon payment.
Can anybody please advise how to calculate payment in year 1 on a Partially Amotrized Bond with a balloon payment at maturity.
Per reading 52- the answer should be $201.92
Principal amount: $1000
Maturity: 5 years
Balloon payment at maturity: $200
Coupon rate: 6%
Market interest rate: 6% (constant)
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