Bonds, coupons and redemption

Step by step

1. 1In Trading, enter the bond, quantity and actual bond price. Enter fees and interest purchased or sold separately. That interest does not form part of the bond’s average cost.
2. 2Example: you buy bonds for €1,000 and pay €20 accrued interest. The €20 remains a separate interest item. When you later receive a €50 coupon, you can offset that €20; the preview distinguishes returned interest from €30 new interest income.
3. 3Open Coupons and select receipt or payment for a short position. Enter the gross coupon, fees and any tax withheld. In Offset earlier interest, select the relevant items and the amount actually offset for each item.
4. 4Under Events, use Bond redeemed for the redemption amount excluding interest and the quantity redeemed. Any interest received or paid and its offset remain separate.
5. 5Use conversion for bonds converted into shares, for example. Enter every investment received or retained. When preserving cost, the allocation must total 100%; for an exchange, enter the value received and the cash portion.
6. 6In Opening position, you can also specify accrued interest already shown separately on your opening balance. Copy the amount and existing carrying value from the statement at that date, not the full later coupon.
7. 7In Year-end value, select the quote basis: per bond or as a percentage of nominal value. A 98% quote on a €1,000 nominal value means €980 market value per bond. Do not include interest in that quote.

What is on the screen?

• Bond quantity and gross amount
• Purchased interest and earlier interest items
• Gross coupon and tax withheld
• Quote basis and nominal value

What happens next?

Bond holdings, cost and interest remain separately visible. When offsetting interest, the preview shows the amount released and the new result.

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