Fixed income
G-Sec
Yield
Calculate G-Sec returns
G-Sec returns depend on coupon, purchase price, and holding period. Key measures:
1. Current yield
Current yield = (Annual coupon / Current price) x 100
Example: G-Sec with 7% coupon, current price Rs 102:
Current yield = (7 / 102) x 100 = 6.86%
2. Yield to maturity (YTM)
The most-used measure. Accounts for coupon + price gain/loss to maturity:
YTM = solve for r: Price = sum(Coupon / (1+r)^t) + FaceValue / (1+r)^T
Computed numerically; most platforms / spreadsheets give YTM directly.
3. Effective annual return
Includes reinvestment of coupons. Useful for compounding comparison.
Example: 7.18 GS 2033
- Face value: Rs 100.
- Coupon: 7.18% annual (paid semi-annually).
- Purchase price (clean): Rs 98.50.
- Maturity: ~2033.
Current yield: 7.29%. YTM: ~7.42%.
G-Sec calculator on Zerodha
Zerodha provides indicative yield in the Bids window. Console shows weighted average cost and current value.
See also
- Government Securities (G-Secs) on Zerodha
- Indicative yield on G-Secs
- Buy G-Sec on Zerodha
- Buy T-Bills on Zerodha
- SDL vs T-Bills vs G-Secs comparison
- G-Sec taxes on Zerodha
- Bond YTM calculator
- Maturity event for G-Secs
- Exit G-Sec before maturity
- Dirty price vs clean price buy average
- Interest payment schedule for G-Secs
- Interest credit for G-Secs
- G-Sec bid cut-off times
- Charges for G-Sec on Zerodha
- Allotment time for SDL/T-bills/G-secs
- G-Sec nomenclature
- G-Sec P&L on Console
- Edit / delete G-sec order on Kite
- Money debited greater than allotment
- Allotted G-Secs not visible
- T-bill allotment less than Rs 100 face value
- Reserve blocked basis for G-Sec
- CDSL SMS for T-bill maturity
- SDL/T-bill/G-Sec issuance calendar
- NRI G-Sec investment via Zerodha
- Buy SDL on Zerodha
- Zerodha bonds platform
- Reserve Bank of India
- Zerodha
External references
References
- RBI, Government Securities Market Primer, rbi.org.in.
- Zerodha, G-Sec yield computation, zerodha.com.