How is the interest calculated on the investment in financial assets if held for trading or avaliable for sale? I assume it is not the coupon amount generated from the bond
A dividend is to a stock as interest is to a bond. If you know how to calculate how dividends work for AFS and TS, then you know how to do it for a bond that is AFS and TS.
yeah but interest could mean yield on the bond in the current period, or the coupon payment on the bond. I understand under HTM interest is basically the yield on the bond in the current period (bond yield * PV of the bond) so I am wondering if it is the same thing for AFS and FV
dividend could mean yield too… but in terms of AFS and TS, they are handled the same way.
Interest income is always the yield at the time of purchase be it afs or htm… It must not be compared with dividends… both approaches are quite different