hh488
:
How did it get $1697.97? Adding up all the 6 half-yearly interest payments? That will happen in 2024. Also, was this bond sold at $1 in 2021? Not vested yet but may be interested.
doctorpot1
hh488
:
it is $169.797 for every 100 unit of this bond. This bond does not pay out any payment every 6 months, instead the interest is compounded. so this 169.797 figure is when all 18 months of interest is compounded together.
When it is 24 dec 2022, the bond will be worth $106.121 per 100 unit. which means if SIA redeem the bond, they will be paying out $106.121 per 100 unit. but as you can see now it is only selling for $98.7 per 100 unit. so it is sold at a discount.
hh488 : How did it get $1697.97? Adding up all the 6 half-yearly interest payments? That will happen in 2024.
Also, was this bond sold at $1 in 2021? Not vested yet but may be interested.
doctorpot1 hh488 : it is $169.797 for every 100 unit of this bond. This bond does not pay out any payment every 6 months, instead the interest is compounded. so this 169.797 figure is when all 18 months of interest is compounded together.
When it is 24 dec 2022, the bond will be worth $106.121 per 100 unit. which means if SIA redeem the bond, they will be paying out $106.121 per 100 unit. but as you can see now it is only selling for $98.7 per 100 unit. so it is sold at a discount.