Convert the stated coupon rate of bank AT1/Tier-2 subordinated bonds, corporate debentures, perpetual bonds, and zero-coupon bonds into a true yield-to-maturity (YTM) for a real comparison.
Calculate and compare the true yield-to-maturity across 10 bank AT1/Tier-2, corporate debenture, perpetual, and zero-coupon bond issuers.
Face Value: BDT 1,000,000
Stated coupon: 9.50% | based on 5 years
The stated coupon stays fixed, but your true return depends on the price you actually paid — buying at a discount pushes YTM above the coupon.
Coupon structure, credit rating, and tenor across 10 issuers.
| Issuer / Bond | Rating | Coupon Rate | Face Value | Tenor | Call Feature |
|---|---|---|---|---|---|
BRAC Bank Perpetual Bond (AT1) Bank AT1 | AA | 9.50% | ৳1,000,000 | Perpetual | Callable @ 5y |
City Bank 3rd Subordinated Bond (Tier-2) Bank Tier-2 | AA- | 10.00% | ৳1,000,000 | 7 yrs | Non-Callable |
Southeast Bank Subordinated Bond (Tier-2) Bank Tier-2 | A+ | 10.75% | ৳1,000,000 | 7 yrs | Non-Callable |
IFIC Bank Perpetual Bond (AT1) Bank AT1 | A | 11.00% | ৳500,000 | Perpetual | Callable @ 5y |
Premier Bank Subordinated Bond (Tier-2) Bank Tier-2 | A- | 11.25% | ৳1,000,000 | 7 yrs | Non-Callable |
Beximco Green Sukuk Al Istisna'a Corporate DebentureShariah-CompliantListed | A | 9.00% | ৳100 | 5 yrs | Non-Callable |
Summit Power Zero-Coupon Bond Zero-Coupon Bond | AA- | Zero (Discount) | ৳100,000 | 3 yrs | Non-Callable |
Confidence Cement Perpetual Bond Perpetual Bond | BBB+ | 12.00% | ৳100,000 | Perpetual | Callable @ 5y |
GPH Ispat Corporate Debenture Corporate DebentureListed | A- | 10.50% | ৳100,000 | 5 yrs | Non-Callable |
Runner Automobiles Corporate Debenture Corporate Debenture | BBB | 13.00% | ৳100,000 | 5 yrs | Non-Callable |
Authoritative briefings on the BSEC (Debt Securities) Rules 2021 and the CRAB/ECRL credit rating framework
The difference between a bond's stated coupon rate and its actual yield-to-maturity (YTM), and why the real return diverges from the coupon as market price moves.
How the AAA-to-D credit rating scale works, and why a lower rating typically demands a higher coupon rate.
What a perpetual bond is, how a call option works, and why the coupon automatically rises (step-up) if the issuer chooses not to call.
Why banks issue both AT1 and Tier-2 subordinated bonds, and how the risk tier differs for the investor.
Why a zero-coupon bond makes no periodic interest payment, and how the maturity yield is calculated from its discounted issue price.
The regulatory and practical differences between a privately placed and a publicly offered bond/debenture under the BSEC (Debt Securities) Rules 2021.
Guidance based on the BSEC (Debt Securities) Rules 2021 and CRAB/ECRL credit rating framework