Here’s the cash-flow associated with investing in this tomorrow and holding it till maturity (Opportunity 3 below).
23-10-2026 : -93.85
22-04-2027 : +3.67
22-10-2027 : +3.67
...
<Interest received in 2 semi-annual instalments each year>
...
22-04-2063 : +3.67
22-10-2063 : +3.67
22-04-2064 : +103.67
In other words,
- (7.34 / 93.85) = interest at the rate of +7.821% per year, paid-out in instalments every 6 months.
- (100 - 93.85) / 93.85 = 6.55% over 37.5 years = gain at the rate of +0.174% per year, paid out at the end.
Can apply the same logic and calculate for other bonds being considered, to compare/decide. ![]()
A previous discussion.
