I was looking at this Akara Capital Advisors bond on BondScanner. It says 15.25% yield. Does that mean I’m getting 15.25% returns on my investment?
great question! the 15.5% yield is the annualized return you’d earn, but that’s based on holding the bond till maturity in 2027. It’s called yield to maturity (YTM), so it’s the return you’d get if you hold it for the entire term.
Yes, and that yield is before taxes. So, while it shows 15.25%, there are taxes that will apply to the interest income you earn on the bond.
Ah, so if I invest ₹9,723.80, I can expect around ₹11,301.93 by maturity based on the 15.25% yield, but the final amount might be a bit lower after taxes?