Funding Circle - how to calculate 'average gross yield'?
Hi, I'm looking into various sources of investment income.
I've joined Funding Circle personally to try it out, prior to proposing it to my employer.
I've struggled to understand how the 'average gross yield' is arrived at?
For, say, a £30,000 investment in Funding Circle repaid over 36 monthly instalments, which pays £4,376.40 in total interest over that time, how do you calculate the 'average gross yield', which is stated as being 9.1%?
Also, I've created a spreadsheet repayment summary, laying out the 36 monthly instalments using the sum of digits method to understand how the returns stack-up year-on-year. I now want to build in the continual reinvestment of all repaid loan parts to work out what the overall return adds up to? Has anyone else tried to do this or can anyone point me in the direction of existing investment formulae to calculate this? Or suggest what the ultimate annual return % might be in doing this?
I'm also now looking into Treasury Gilts and Corporate Bonds - can anyone offer me advice re. how to try to get the best mix of investments?
The fixed rate bonds/building society a/c business deposits I've so far seen range up to 2.11% for a deposit of up to £85k. I'm sure I can beat that several times over without taking tooo much risk... any suggestions?
Many thanks in advance.