In the bullet bond we are getting a total of 1000+60*5 = 1300 back over the course of 5 years.
But in the Amortized Bond we are only getting back 237.40*5 = 1187 back.
Is my understanding correct or am I missing something?
In both cases the investor receives its money that he lended out (total principal repayment in both cases is $1.000 see third rpw).
In the amortized Bond case the investor receives less interest because the outstanding principal decreases over the years. The person/company taking the loan only pays interest over the initial loan -/- the principal repayment.
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Thanks a lot this cleared my doubts.
You’re correct.
Is there a problem?
No just wanted to confirm that 
.
Thanks!!
My pleasure.
How do you calculate the payment amount for partially amortized bonds using BAII calculator
Set FV to something other than zero.
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Could you tell how me to do that? I only know 2nd amort