Can anyone tell me below mentioned way of calculating average rate of return for bond portfolio is correct or not? If any short coming here?
Avg balance of monthly Portfolio 12,811,089,655
Intrest income for the month 64,893,792
Average rate of intrest for the month 6.08%
Calculation steps:
=(64,893,792*360*100) / (12,811,089,655*30) = 6.08%
30 is number of days for the month
360-number of days for year
Avg balance of monthly Portfolio 12,811,089,655
Intrest income for the month 64,893,792
Average rate of intrest for the month 6.08%
Calculation steps:
=(64,893,792*360*100) / (12,811,089,655*30) = 6.08%
30 is number of days for the month
360-number of days for year