Bond ISIN INE031A08699

Issuer HUDCO
FV 100
Coupon rate 8.41% on 15 Sept and 15 March Data from issuer or
Coupon frequecy Semi annual other authentic website
Issue date 3/15/2019
maturity date 3/15/2029

From ZCYC curve on ccil website

Maturity (Yrs) 3/Sep/20 Number of coupon payments left till maturity
0.0 2.85
0.5 3.43 Clean Price
1.0 3.74 Semi annual period Spot rate as per ZCYC
1.5 4.03 1 3.43
2.0 4.31 2 3.74
2.5 4.56 3 4.03
3.0 4.79 4 4.31
3.5 4.99 5 4.56
4.0 5.18 6 4.79
4.5 5.34 7 4.99
5.0 5.49 8 5.18
5.5 5.62 9 5.34
6.0 5.74 10 5.49
6.5 5.84 11 5.62
7.0 5.94 12 5.74
7.5 6.02 13 5.84
8.0 6.09 14 5.94
8.5 6.16 15 6.02
9.0 6.22 16 6.09
9.5 6.27 17 6.16
10.0 6.32
Thus the Fair clean price of the bond is Rs. 116.82
The fair YTM using trial and error

The bond was last traded on 24 August 2020 for Rs. 111.31 with a yield of 6.76%

The bond seems to be underpriced as per our calculations whereas that may not be the ca
We have calculated the clean price and ignored the accrued interest
We have assumed the bond cashflows are discounted using ZCYC assuming it has same ris
 17

Trial and Error for YTM

Cash flow (Coupon/FV) PV of CFs 6.10% 5.95%
4.205 4.134608581 4.082331877 4.08522066
4.205 4.053403979 3.963242224 3.968853233
4.205 3.962784866 3.847626651 3.855800529
4.205 3.86465867 3.735383812 3.745968129
4.205 3.761203979 3.626415317 3.639264303
4.205 3.654298751 3.520625647 3.535599933
4.205 3.545488932 3.417922071 3.434888441
4.205 3.436025939 3.318214559 3.337045713
4.205 3.326908515 3.221415712 3.241990034
4.205 3.218921693 3.127440678 3.149642013
4.205 3.112671723 3.03620708 3.059924524
4.205 3.008616755 2.947634946 2.972762636
4.205 2.907093369 2.861646635 2.888083553
4.205 2.808339228 2.778166773 2.805816552
4.205 2.712512225 2.697122182 2.725892924
4.205 2.619706522 2.618441822 2.648245919
104.205 62.69562273 62.99524869 63.75736926
 Sum of PV of CFs 116.8228665 115.7950867 116.8523684

5.95% assuming the bond is a risk free bond like Govt. bond

020 for Rs. 111.31 with a yield of 6.76%

our calculations whereas that may not be the case because of the following assumptions
nored the accrued interest
e discounted using ZCYC assuming it has same risk factors as a GoI bond
Date Last Trade PricLast Trade ValuTotal Trade ValLast Trade Yie Weighted Avera
Weighted Average Yield(YTM)(%)
6-Sep-19 106.3398 100 200 7.6 106.3398 7.6
11-Sep-19 106.67 40 100 7.55 106.67 7.55
17-Sep-19 106.4593 20 20 7.58 106.4593 7.58
18-Sep-19 106.45 180 180 7.58 106.45 7.58
26-Sep-19 105.3077 5000 5000 7.75 105.3077 7.75
3-Oct-19 106.1329 2500 3000 7.625 106.1162 7.6275
11-Oct-19 105.5499 500 500 7.71 105.5499 7.71
18-Oct-19 105.5391 500 500 7.71 105.5391 7.71
23-Oct-19 105.7355 500 4500 7.68 105.7355 7.68
24-Oct-19 105.9558 1000 2000 7.65 105.8782 7.66
30-Oct-19 105.9267 5000 5000 7.65 105.9267 7.65
26-Nov-19 106.9553 2500 5000 7.49 106.9553 7.49
27-Nov-19 106.9553 2500 2500 7.49 106.9553 7.49
28-Nov-19 107.0865 2500 2500 7.47 107.0865 7.47
3-Dec-19 107.012 5000 5000 7.48 107.012 7.48
5-Dec-19 106.0109 5000 10000 7.63 106.0009 7.6315
9-Dec-19 105.874 500 500 7.65 105.874 7.65
11-Dec-19 105.4115 480 500 7.7269 105.4115 7.7269
12-Dec-19 105.0509 2000 4500 7.775 104.9966 7.7833
3-Jan-20 106.833 500 3000 7.5 106.7809 7.5083
7-Jan-20 106.6316 50 1500 7.53 106.5501 7.5433
8-Jan-20 106.6303 500 1000 7.53 106.6303 7.53
14-Jan-20 106.1616 16500 39000 7.6 106.1616 7.6
15-Jan-20 106.292 500 500 7.58 106.292 7.58
16-Jan-20 106.1594 5000 5000 7.6 106.1594 7.6
17-Jan-20 106.2875 1000 3000 7.58 106.2108 7.5917
21-Jan-20 106.5486 5000 7500 7.54 106.5051 7.5467
4-Feb-20 107.1265 2500 2500 7.45 107.1265 7.45
25-Feb-20 109.0701 500 1000 7.155 109.0532 7.1575
12-Mar-20 108.4117 500 500 7.25 108.4117 7.25
13-Mar-20 107.4063 1000 6000 7.4 107.2211 7.4283
17-Mar-20 107.2089 500 500 7.43 107.2089 7.43
8-Apr-20 106.9048 500 1000 7.47 106.7422 7.495
28-Apr-20 108.6416 2500 25000 7.2 107.9223 7.309
18-May-20 110.6062 1000 3000 6.9 110.4485 6.9233
19-May-20 110.6714 1000 2000 6.89 110.57 6.905
21-May-20 110.7021 100 100 6.8907 110.7021 6.8907
26-May-20 111.6059 2500 2500 6.75 111.6059 6.75
27-May-20 111.6374 1000 2000 6.745 111.5862 6.7525
28-May-20 111.4981 1000 2000 6.765 111.4469 6.7725
3-Jun-20 111.3118 1500 3500 6.79 111.273 6.7957
21-Jul-20 113.3011 1500 3000 6.48 113.2667 6.485
24-Jul-20 113.1143 500 1000 6.505 113.0971 6.5075
27-Jul-20 113.077 2000 4000 6.51 113.0427 6.515
30-Jul-20 113.1969 1000 2000 6.49 113.1283 6.5
6-Aug-20 113.1167 1000 2000 6.5 113.0825 6.505
13-Aug-20 112.7552 5000 10000 6.55 112.7552 6.55
21-Aug-20 111.1793 1500 1500 6.78 111.1793 6.78
24-Aug-20 111.3128 1500 1500 6.76 111.3128 6.76