Bare with me, as I don't know how to properly describe what I'm asking for. Please edit the question if it can be asked in a way that uses correct vocabulary. I might be just asking for an compound formula. If so I apologize.
I'm looking for the name of a accounting or finance concept/formula that reflects the considerations in my following story.
I invested in a companies bond (Solar City) that promised 6% interest with 3 year maturity. But a month later another company (Tesla) acquired the company and bought out the debt. I received all 3 years of interest once the merge completed. A total of two months after investing.
Since 2% gains over a week of investing is different from 2% APY for a CD, I wanted to factor the time it took to realize the yield into my ROI. It would be a plus if the formula considered a discount rate over time somehow. That way investments with longer terms but the same interest rate can be properly evaluated.
So its like calculating compound interest but where the compounding term is the dependent variable.
I want to compare a slice of investment performance to other investments that are defined by APY.
(((AmortizatizedBalance-BeginningBalance)/BeginningBalance) * 365/DaysInvested)-(DiscountRate * DaysInvested)