  We study a standard-embedding $N=2$ heterotic string compactification on $K3\times T^2$ with a Wilson line turned on and perform a world-sheet calculation of string threshold correction. The result can be expressed in terms of the quantities appearing in the two-loop calculation of bosonic string. We also comment and speculate on the relevance of our result to generalized Kac-Moody superalgebra and $N=2$ heterotic-type IIA duality. 
$N=2$ heterotic string threshold correction, $K3$ surface and   generalized Kac-Moody superalgebra