percival1994
New member
Check my maths please
The R186 has a face value of R1, a coupon rate of 10.5% p.a and a maturity of 21/12/26.
This means that for an investment of R100 I would stand to make R10.5 p.a if the investment is compounded annually? Though payouts are semi-annual, I don't know if the investment is compounded semi-annually?
Via EasyEquities I am able to currently purchase at R1.07 per share. This translates to a return of R9.81 p.a. for the same R100 invested.
Does this sound right? At maturity, does the increase or decrease in share price affect the interest received? i.e. if at maturity the share price was R1.20, would I get an extra 9% when the bond investment closes (not sure if this makes sense but I'm imagining some sort of sale at maturity after the final coupon payout)?
The R186 has a face value of R1, a coupon rate of 10.5% p.a and a maturity of 21/12/26.
This means that for an investment of R100 I would stand to make R10.5 p.a if the investment is compounded annually? Though payouts are semi-annual, I don't know if the investment is compounded semi-annually?
Via EasyEquities I am able to currently purchase at R1.07 per share. This translates to a return of R9.81 p.a. for the same R100 invested.
Does this sound right? At maturity, does the increase or decrease in share price affect the interest received? i.e. if at maturity the share price was R1.20, would I get an extra 9% when the bond investment closes (not sure if this makes sense but I'm imagining some sort of sale at maturity after the final coupon payout)?