*Question: Can somebody help me with how Yield value is calculated?
I am taking live example:
Corporate Bond: Sammaan Capital Limited 08 Sep 2027
Face Value: ₹1,00,000
Coupon Rate: 8.35%
Yield: 12.65%
Purchase Value: ₹96,008
Principal Amount: ₹91,318
Accrued Interest: ₹4,689
Payment schedule:
08-09-2025: ₹7,494
08-09-2026: ₹7,515
08-09-2027: ₹7,514
08-09-2027: ₹1,00,000
Total Return: ₹1,22,523
So, if I am investing ₹96,008 today, I will getting ₹1,22,523 after 893 days.
RoI
= ((₹1,22,523 - ₹96,008) * 100) / ((₹96,008) * (893/365))
= 12.06%
Whereas document claims as 12.65%.
How is that 12.65% arrived at?
Kindly help me to understand how Yield is calculated.