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Where do I enter an L&T non-convertible debt?

edited March 2013 in General
I bought an L&T FINANCE FIXED DEPOSITS that I bought at IPO.

The option I have taken is an semi-annual interest payment with a tenure of 120 months. There are two different interest rates. The coupon rate is 10.24% while the yield at redemption is 10.50%. How do I select the categories under FD? 

What should I enter as the company name since it is not exactly a fixed deposit. I think the exact technical term is debenture.
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Comments

  • It is very easy to enter this investment in MProfit. This investment is actually a non-convertible debenture (NCD).
    You can enter this investment either in Bonds or Deposits. Create the new asset name ‘L&T Finance NCD’

    Enter following details:
    Interest 10.24%
    Interest Type: Cummulative
    Interest Payment: Half Yearly (Semi annual)
    Maturity Date: should be 10 years from the investment date

    And enter transaction details:
    Date: date of investment
    And other details

    Please note that the interest is compounded half-yearly (Semi Annual), hence effective yield, which is annualized return (XIRR) will work out to 10.50% for 10 years.

    If you want to confirm this, just change the investment date of this transaction to 10 years before, say 19-Apr-2000 and put the maturity date of today, and then save this transaction. Now, roll over the mouse to current value, and you will notice the annualized return (yield) will be 10.5%. You can change the dates back to the actual dates of this transaction.


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