A bond ETF with a duration of 17 years loses roughly 17% when rates rise 1%p. Korea's 30-year government bond yield rose 1.459%p this year — and the ETFs tracking it fell 25.39% on average. Here is the arithmetic behind that.
The "8.1% annual average" attached to the 20-year bond's 161.8% maturity return is that total divided by 20. The real compound rate is 4.93%, and 4.41% after tax. Coupon and spread, back-calculated by maturity.
Korea's average pump price was 1,860.2 won per liter in early September, of which 697 won is tax. Dubai crude jumped $7.6 to $99.9 a barrel, yet pump prices fell for a 16th straight week — the lag explains the gap.
Convert a CB and the bond disappears; exercise a BW's warrant and the bond stays. On the same 10 billion won raise, the cash reaching the company and the shares created both diverge.
A cash dividend is taxed at 15.4% on arrival; a share cancellation shrinks the share count with no tax at all. Here is the arithmetic behind a 3.3% cancellation lifting EPS by 3.4%, plus a side-by-side after-tax table.
The theoretical ex-rights drop in a Korean shareholder-allocation rights offering equals allocation ratio × discount rate ÷ (1 + allocation ratio). Samsung Biologics' terms — 0.039 and 15% — produce 0.57%.
The ex-rights base price for a bonus issue is the last cum-rights close divided by (1 + allotment ratio). Here is why a 0.3-share ratio drops the base price 23.1%, with the decline rate calculated for every common ratio.
Premium/discount measures market price against NAV; tracking error measures the fund's return against its index. From August 19 Korea tightened the domestic ETF threshold to 2%. Here is what a 2% premium actually costs you.
From January 2026, Korea's securities transaction tax is 0.20% on both KOSPI and KOSDAQ sales. Selling 10 million won of stock costs 20,000 won, withheld automatically. Here is how that 0.05 percentage point rise compounds with turnover.
Tracking error measures how far an ETF lags its index over time; the premium/discount (gwaerira) shows how far the market price strays from NAV right now. Different causes, different screens to check.