The return on a BTP depends mainly on two factors: the yield of the security and the duration of the investment. Key points to consider:
- Coupons: BTPs pay interest (coupons) periodically, almost always every six months. The amount of the coupons is determined by the interest rate set at the time of issue.
- Yield: The actual yield may vary depending on the purchase price. If you buy a BTP at a price lower than the nominal value, the yield will be higher.
- Maturity: At maturity, you will receive the nominal value of the bond, so the total gain includes the coupons received plus any capital gains.
- Inflation: It is important to consider the impact of inflation on the purchasing power of the coupons received.
If you have a specific BTP in mind and want to calculate the yield or the potential gain, enter how much to invest in the BTP investment simulator!