Redemption yield

Question 1

EE 5% 2028 £127

Answer 1

-1.37%

1) 5/127 x100=3.94%
2) 127-100= £27 capital loss
3) 27/4=-6.75
4) 6.75/127=0.0531 x100= -5.31%
6) 3.94% - 5.31% = -1.37%

Question 2

Sainsbury’s 6% 2029 £104

Answer 2

5%

1) 6/104 = 5.77%
2) 104-100= 4
3) 4/5= -0.8
4) 0.8/104=0.00769 x100= -0.77%
6) 5.77 - 0.77 = 5%

Question 3

MUFC 8% 2030 £119.5

Answer 3

3.95

1) 8/119.5 x 100 = 6.67%
2) 2) 119.5 - 100 = 19.50 capital loss
3) 19.5/6 = 3.25
4) -3.25 / 119.5 x 100 = -2.72
5) 6.67 - 2.72 = 3.95%

Question 4

Adidas 3% 2026 £108

Answer 4

-0.92%

1) 3/108 = 2.78
2) 108-100 = 8
3) 8 / 2 = -4
4) -4/108= -0.03703 x 100 = -3.70%
5) 2.78 -3.70 = -0.92%

Question 5

Nike 2.5% 2029 £113

Answer 5

-0.09%

1) 2.5/113 x 100 = 2.21%
2) 113-100 = £13 capital loss
3) 13/5= 2.6
4) 2.6/113 x100 = -2.3
5) 2.21 - 2.3 = -0.09%

Question 6

Vodafone 6% 2027 £95

Answer 6

8.06%

Question 7

Tesco 4% 2040 £127.86

Answer 7

1.77%

Question 8

Guinness 8% 2030 £116.85

Answer 8

4.45%