The best bonds to buy with CFDs: American, German and British bonds

Bonds, however, also require the buyer to periodically collect a so-called "coupon", which can be described as a percentage of the nominal capital of the bond: this is precisely the great advantage offered by bonds such as government bonds. In the case of CFDs, you invest in instruments that have as their underlying, for example, European bonds issued by countries such as Germany or Great Britain.

It must be said that not all government bonds have a coupon, as in the case of those bonds that expire after a short period of time. In the case of those securities that include a coupon percentage, however, it may be useful to know the formula for calculating it. To calculate the bond yield, it is mainly necessary to evaluate the components represented by the purchase price and the value of the annual coupon.

Practical example: to calculate the yield (R) of a 10-year bond, divide the coupon value (C) by the purchase price (P) and multiply this result by 100. Therefore, the mathematical formula for calculating the bond yield is as follows: R = C/P * 100. However, this simplified formula does not consider other variables related to securities of this type: therefore carefully evaluate which bonds to invest in.