This is the time to distribute coupons for my LP bonds back to my parents. For those who are scratching their heads, here's the prequel for this post.
There are two tranches for the bond:
1. LP bond 50k
Starting capital: 50k
Invested capital (inclusive of comms): $49,773.02
Cash accumulated from payout of holdings: $2,144
Paper gain (loss) from drop in market price of holdings: ($748.02)
Total portfolio gain (loss): $1,395.98
Total portfolio % changes: 2.79%
Going forward, since it's a capital guaranteed bond (by me, of course), I need to retain a certain amount of cash in case my parents need to liquidate it. I'll pay 70% of the net portfolio gain or 2% of 50k (which is $1000), whichever is higher. That should be the policy going forward.
70% of $1,395.98 is $977.19, which is lower than $1000, so I'll just pay ......