tjh290633 wrote:GoSeigen wrote:To get a Total of 5151.20 for TJH's holdings on 15 Feb 2013, I took the sum of the above dirty prices multiplied by the nominal amounts purchased that TJH quoted earlier in the thread, viz:tjh290633 wrote:Date Stock Amount
26/02/2008 4.5% 2013 999.30
26/02/2009 5% 2014 891.82
25/02/2010 4.75% 2015 913.41
25/02/2011 4.0% 2016 941.44
28/02/2012 8.75% 2017 704.87
Did I understand those nominal amounts correctly TJH?
Given 5-year yields were below 1% by 2013 I agree returns after that date would be paltry. That has never been in dispute.
Yes, those nominal amounts are correct.
Okay then I'm still struggling to marry up your calculated 2013 IRR of 0.2054% (precise but too low) with my calculated 2.47% -- which to me looks in the right ball-park for that ladder started in 2008. Where have I gone wrong? Or do you accept your figure may have been wrong? Or are we at cross purposes?
Over that period 5-year gilt yields fell from 4.5% to less than 1%.