Question

Create an amortization table for a corporate bond which has a yield to maturity (YTM) of...

Create an amortization table for a corporate bond which has a yield to maturity (YTM) of 4% that will last 15 years and has a coupon rate of 4%.

If you could use excel and show the formulas that would be great!

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Answer #1

The price of the bond is equal to the face value since the YTM is equal to the coupon rate. It is called a par bond.

Let's assume the face value to be $1,000

Coupon = 1000 * 0.04 = $40

The first screenshot contains the amortization table while the second one contains the formula in the excel sheet.

Can you please upvote? Thank You :-)

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