Metaverse News: UPX Effective Yield Formulae, and how to calculate the Effective Yield of your own Upland Portfolio!
In the latest Metaverse News, we find out How to calculate the Effective Yield of your Upland Portfolio and how to optimize it to attain the best results.
So, first things first an upland property that a pays 14.7% annualised yield can be compared to a Perpetual Coupon bearing bond that which a pays monthly yield.
Before we begin, we must convert the 14.7% annualised yield into monthly yield.
Here, we have:
Net Property Value = 3,488,584 (Pay attention to not use Net worth as it includes cash and cash equivalents)
Our UPX Per Month = 48,192
Number of Interest periods = 12 (12 Months in a year)
To calculate our current effective UPX yield, we must use the following formulae. Effective Annual Interest Rate (Yield) Formulae =
Therefore, in this example our affective yield =
KINDLY, Pay extra attention to solving this equation by using BODMAS method of solving equations, while solving the Upland Affective Yield Equation.
Our effective yield here = 16.577041%
Kindly, note, We have used a simple interest rate and not a compound interest rate since the yield is returned to one’s portfolio and is not automatically reinvested at 14.7% APR yield within Upland.
Therefore, calculation of Monthly yield from APR or calculation APR from UPX Per Month does NOT take into account compound interest.
This tracking error may vary from player to player, as one player may choose to hold on to their liquid UPX while another player may deploy it straight away or once they reach a threshold for example every 10,000 UPX when the player can mint a fresh land.
Upland offers an Interest yield of 14.7%
Effective Interest Rate ≥ 14.7%
An Affective interest yield of greater than or eequal to 14.7% indicates the player has premium interest-bearing properties and may be an indication of a health accumulation price and the presence of Collection properties in their portfolio
Effective Interest Rate ≤ 14.7%
An Affective Interest yield of less than or equal to 14.7% indicates a problem with the account – in most cases either the portfolio holder has overpaid for the properties in the secondary market or they have accumulated non-interest bearing instruments such as a Block Explorer, an NFLPA Legits, a Structure Ornaments or other non-interest-bearing instruments.
Since we all know players are exiting in droves from every Metaverse and that includes Upland Metaverse. Here is how one should come up with a fair valuation for the account.
If the UPX per Month yield is below 14.7% a buyer may negotiate a deeper discount depending on the tier of the city of the properties. The higher the city tier the closer to mint price or even a premium may be acceptable.
The lower the city tier, the higher will be the negotiating power of the buyer as per porter’s five forces and can demand a deeper discount to mint prices.
Another, phenomenon to note, currently USD sales attract a deeper discount as compared to UPX, so that may also be factored into how to calculate the fair market value of the sale of assets or an account entirely.
This works best for a Yield Maximisation Strategy!
You be the arbiter of the truth – our readers of The Metaverse Street Journal!