as we all know, the current one-year fixed deposit rate of banks is 3.%, which can be expressed as deposit in 1 yuan, and after one year, you can get interest of 3. yuan, which is the annualized rate of return for one year. From here, we can see that the calculation of annualized rate of return needs to be divided into two steps: the first step is to convert it to one year; The second step is to convert to 1 yuan. Below I will illustrate how to calculate the annualized rate of return of an investment with examples.

for example, on February 8th, 212, I bought 2 9 offshore bonds at a full price of 96.96 yuan (transaction price of 95.17 yuan+accrued interest of 1.736 yuan). Today, the bond's closing price is 11.178 yuan with accrued interest of 6.57 yuan. If I sell it tomorrow, the full price will be 11.178 yuan +6.57 yuan.

the first step is to convert it into one year: (17.748 -96.96 yuan) /.67 =X/1 year, and X=16.18 yuan, which means that the profit of 1.842 yuan (=17.748-96.96 yuan) in .67 year is equivalent to the profit of 16.18 yuan in one year.

the second step, converted to 1 yuan: 16.18 yuan /96.96 yuan =Y/1 yuan, Y=16.7 yuan, which means that I spent 96.96 yuan to buy 9 offshore debt and earned 16.18 yuan, which is equivalent to 16.7 yuan if I spent 1 yuan.

according to the definition of annualized rate of return of the deposit bank, the annualized rate of return of my investment project of purchasing 9 offshore debt is 16.7%.

if expressed by a formula (the derivation process is omitted): annualized rate of return = (maturity price-purchase price)/(remaining term × purchase price)

For example, the annualized rate of return of the investment project of purchasing 9 offshore debt =(17.748 yuan -96.96 yuan)/(.67× 96.96 yuan) = 1.