bounty > goodness, virtue; kindness, generosity great mind > magnanimity

2 The conqueror naught cared him to slay, 3 But, casting wrongs and all revenge behind, 4 More glory thought to give life than decay,

thought > [thought it] decay > death

5 And said, "Paynim, this is your dismal day;

Paynim > Pagan, heathen dismal day > {Dies mali, [one of] the evil or unlucky days of the medieval calendar}

6 Yet if you will renounce your miscreance,

miscreance > false belief, false faith

7 And my true liege man yield yourself for ay,

liege man > {Vassal; faithful follower or subject} ay > ever

8 Life will I grant you for your valiance,