Final answer:
An amortization schedule outlines principal and interest payments for a loan but does not show the increase in market value of the investment.
Step-by-step explanation:
An amortization schedule provides a breakdown of the payments for a loan into the principal portion and the interest portion throughout the life of the loan. It also shows the beginning and ending balances of the principal after each payment. However, an amortization schedule does not show the increase in market value of the property or investment because it is strictly a tool for illustrating the repayment of a loan over time.
In terms of bond investments, when interest rates go up, the present value of future payments decreases since those payments are now discounted at a higher interest rate. Even though the actual dollar payments set by the original interest rate do not change, the selling value of the bond will decrease because the bond's fixed payments are less attractive to investors compared to new bonds issued at higher current rates.