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Oliullah_Siddique's avatar
Oliullah_Siddique
Brass Contributor
Aug 02, 2022

Bond redemption schedule

Hello,

 

A bond will be issued now at price USD 2,071,779,815 and maturity value USD 2,499,000,000 after 4 years @ 7% per annum. Bond will be redeemed in 6 equal instalments starting from the end of the 18th month from the issue date and each 6-months thereafter.

 

I need formula for the redemption schedule.

 

An excel file attached herewith for the raw data.

 

Thanks in advance.

 

excel
Formulas and Functions

3 Replies

  • ecovonrein's avatar
    ecovonrein
    Iron Contributor
    Aug 02, 2022
    What's the question? Are you asking how to compute 2,499,000,000 / 6? Do you want a formula to generate column C for you? I do not follow.
      • ecovonrein's avatar
        ecovonrein
        Iron Contributor
        Aug 04, 2022
        You need a column between B and C that starts with C18 and decreases by the values in C. That remain Principal allows you to compute column D. When you have those numbers, you can subtract the Interest from the Annuity Payment to arrive at the Principal (amount to redeem, which in turn reduces the remain Principal).