Question

Using the round 2 fasttrack bond table (page 2), how is digby's "yield" calculated for their 10.0s2020 bond?

Answer 1

This is based on the round 2 FastTrack bond table, Digby’s “yield” for their 10.0S2020 bond is calculated in this format:


= ($100 - 93.41) / 100


= 10.0 / 93.41


= (2480 - 2020) / 2020


= (2480 - 2020) / 2480


= 0.1855 or 15.55% is the yield


NOTE: It isn’t computed, it is reported.