If the initial price of a Taiwanese bond was NT19500 Face Va

If the initial price of a Taiwanese bond was NT$19,500 (Face Value: NT$20,000), the coupon income was NT$1,700, the end-of-period bond price was NT$18,030, and the NT appreciated from $0.0375/NT to $0.0425/NT, then what was the bond\'s total USD return during the period?

Solution

Investment amount in $ = NT$19500*0.0375 = 731.25$

Selling price in $ = NT$18030*0.0425 = 766.275$

Coupon income in $ = NT$1700*0.0425 = 72.25$

Return in $ = 72.25+(766.275-731.25) / 731.25

=75.25+35.025/731.25

=107.275/731.25

=14.67%