NET TOTAL RETURN ON BOND INVESTMENT CALCULATOR
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# NET TOTAL RETURN ON BOND INVESTMENT CALCULATOR

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CALCULATE NET TOTAL RETURN ON BOND INVESTMENT DENOMINATED IN ANY CURRENCY.

With break-down by: Trading Gain/Loss (Realized & Unrealized), Foreign Exchange Gain/Loss (Realized & Unrealized), Interest Received & Accrued, Fees Paid. For fixed rate and zero-coupon bonds.
Net total return is calculated:
on the outstanding position
in case of sale (total or partial)
at expiry date (redemption)
in trade currency (denomination currency) and in local currency
for current or past transactions
When buying an asset in foreign currency, there are 2 components to be kept under control:
Trading gains/losses (difference between purchase price and sale or market price)
Foreign Exchange gains/losses (delta between exchange rates at purchase and at sale or mark-to-market)
If, for example, you invest  €10.000 to buy a bond denominated in USD at a price of say 125 and the exchange rate USD/EUR is say 0,80 (Euros for 1 Dollar), by converting your €10.000  into \$12.500 (10.000/0,80) you will be able to buy \$10.000 face value (\$10000*125/100).
Suppose you subsequently sell your bond at a price of \$130, generating \$13.000. Suppose in the meantime the Euro appreciated vis-à-vis the Dollar, the exchange rate now being 0,70. Your sale proceeds converted to Euro will therefore generate €9.100 (13.000*0,70). Since you originally invested €10.000, you realize a net capital loss of €900.
Now let’s analyze where this comes from:
you realized a Trading Gain of \$500 [(10000 * (\$130-\$125)] which converted at 0,70 will generate €350
you realized a Forex Loss of €1.250 [(\$12.500*(0,80-0,70)], due to the USD devaluing
in net terms you realized a capital loss of €900 (1.250-350)
Now, suppose the bond you invested in - expiring say on July 7, 2030 - pays a coupon of 3% twice a year, on Jan. 7 and July 7. If you bought the bond say on March 10, 2019 and sold it on Jun 3, 2020, in addition to the sales proceeds of \$13.000, in your holding period you will get a net interest income of \$370,68 [or €259,48 (370,68*0,70)], composed as follows:
-\$50,96 interest paid at purchase on March 10, 2019 from last coupon date of Jan. 7, 2019 (\$10000*3%*62days)/365)
\$148,77 coupon received on July 7, 2019 (\$10000*3%*181days)/365)
\$151,23 coupon received on Jan 7, 2020 (\$10000*3%*184days)/365)
\$121,64 interest received at sale on Jun 3, 2020 from Jan.7, 2020 (\$10000*3%*148days)/365)
As a result, your total return on investment (ROI) will be:
-6,41% in Euros (-900,00+259,48)/10.000)*100
+6,97% in USD (500.00+370,68/12.500*100)
CALCULATE NET TOTAL RETURN ON BOND INVESTMENT DENOMINATED IN ANY CURRENCY.

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