Property Advertisement - AMO Residence for sale!

Property Advertisement - AMO Residence for sale!
Click on the banner for more details.

Search This Blog

Saturday, October 27, 2018

Many Singapore retail investors don't understand bond trading.

Temasek retail bond closed at $1.022 which denoted that the bond yield was a lot lower than 2.7%.

I've calculated the bond yield below in a simple bond cashflow table.
The bond yield at $1.022 is 2.23%.  Therefore, it is stupid for retail investors to purchase the bond at $1.022 as there are other financial derivatives to invest in to yield a much higher return.

1 comment:

Eric Ho said...

Your return on the bond investment will be much lower if you factor in the transaction fee (brokerage fee).