Bond Market Price
$972.10
Trading at a 2.79% discount to par ($1,000)
Effective YTM
5.12%
Semiannual compounded annual return
Annual Cash Income
$47.50
Cash flow per $1,000 face value
Break-Even Recovery
3.1 yrs
Cash coupons neutralize past drawdown
MarketWatch Intelligence Verdict
Attractive entry yield for long-term income despite ongoing bond market trouble.
With yields hovering around 5.10%, the coupon cushion offsets duration shocks. Even if yields drift 50 bps higher, 1.2 years of coupon clipping restores principal parity.
Yield Shock Scenario Sensitivity Matrix
| Scenario (Δ Yield) | Hypothetical Yield | Price Impact | Immediate Bond Price | 1-Year Total Return | Time to Capital Recovery |
|---|