We study a standard-embedding N=2 heterotic string compactification on
K3×T2 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.Comment: 12 pages, LaTeX; reference added, numerical factor correcte