Eurobond Calculator
Enter the eurobond’s currency, face amount, coupon rate, maturity and market yield. Its market value, coupon income and lira value at the CBRT rate are worked out.
- Yearly coupon income0.71 USD
- In lira (CBRT forex buying)508.69 ₺
- Yearly coupon income (lira)35.31 ₺
- Macaulay duration4.30 years
- Price change if yields rise 1 point-4.17%
Exchange rates: TCMB
How it is calculated
A eurobond is a bond the Treasury or a company issues abroad in foreign currency. Turkish eurobonds pay coupons every six months and are usually bought in multiples of 1,000 dollars or euros. The yield is in that currency; your return in lira also depends on the exchange rate.
Değer = Σ K ÷ (1 + y ÷ 2)^k + N ÷ (1 + y ÷ 2)^nK: half-yearly coupon (N × coupon rate ÷ 2) · N: face amount · y: yearly market yield · n: coupons left. The lira value uses the CBRT forex buying rate.Example
A $10,000, 7.125% eurobond with five years left is worth $10,263.20 at a 6.5% yield: it trades at a premium because the coupon beats the yield. Yearly coupon income is $712.50.
Frequently asked questions
Why is a eurobond priced above or below 100?
If the market yield is above the coupon the price drops below 100 (discount), if below it rises above 100 (premium), so the buyer earns the market yield.