Bond Performance

Question 1

GRY (Gross Redemption Yield)

Answer 1

a) work out the running/flat yield
b) work out capital loss/gain, per annum, to redemption, as a % of purchase price
d) add (b) and (c) together to get the NRY

Question 2

NRY (Net Redemption Yield)

Answer 2

a) work out the running/flat yield
b) net it down (based on tax status)
c) work out capital loss/gain, per annum, to redemption, as a % of purchase price
d) add (b) and (c) together to get the NRY