Investment Guides 

Understanding the tricky bits

The hardest part of bond trading is calculating your return if you buy and sell bonds before the redemption date, particularly when it comes to working your accrued interest. This is particularly important for investors who are into "stagging," ie. rolling capital into each new issue accruing interest along the way, leading ultimately to a decent total return on the original capital investment if the bonds are traded before redemption. Anecdotal evidence suggests some investors have made returns of up to 24 per cent in 2012 using this method.

To continue reading, register today

to enjoy limited access to the following:

  • Daily trading news
  • Funds coverage
  • Features on big investment themes
  • Comprehensive companies coverage
  • Economic analysis
Subscribe to Investors Chronicle

Related topics

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now