IB Analytics MCP Server

#!/usr/bin/env python3 """ US Treasury STRIP Bond Hold-to-Maturity Analysis Analyzes holding scenarios for S 0 11/15/40 (US Treasury STRIP) """ from datetime import datetime from decimal import Decimal, ROUND_HALF_UP def analyze_strip_bond(): """ Analyze US Treasury STRIP (Separate Trading of Registered Interest and Principal of Securities) STRIP = Zero-coupon bond created by stripping coupons from Treasury securities S 0 11/15/40 = Treasury STRIP maturing November 15, 2040 """ print("=" * 80) print("US TREASURY STRIP BOND ANALYSIS - S 0 11/15/40") print("=" * 80) print() # Current position details face_value = 50000 # Par value at maturity quantity = 50000 # Units held current_price = 49.30192 # Current market price (% of par) purchase_price = 46.914 # Your purchase price (% of par) purchase_cost = 23457 # Total cost basis current_value = 24650.96 # Current market value unrealized_pnl = 1193.96 # Current unrealized P&L maturity_date = datetime(2040, 11, 15) purchase_date = datetime(2025, 7, 10) today = datetime(2025, 10, 5) days_held = (today - purchase_date).days days_to_maturity = (maturity_date - today).days years_to_maturity = days_to_maturity / 365.25 print("CURRENT POSITION") print("-" * 80) print(f"Security: US Treasury STRIP 0% 11/15/2040") print(f"CUSIP: 912834JH2") print(f"ISIN: US912834JH26") print(f"") print(f"Face Value at Maturity: ${face_value:,.2f}") print(f"Units Held: {quantity:,}") print(f"") print(f"Purchase Date: {purchase_date.strftime('%Y-%m-%d')}") print(f"Purchase Price: {purchase_price}% of par") print(f"Total Cost Basis: ${purchase_cost:,.2f}") print(f"") print(f"Current Date: {today.strftime('%Y-%m-%d')}") print(f"Current Price: {current_price}% of par") print(f"Current Value: ${current_value:,.2f}") print(f"Unrealized P&L: ${unrealized_pnl:,.2f} ({unrealized_pnl/purchase_cost*100:.2f}%)") print(f"") print(f"Days Held: {days_held} days") print(f"Maturity Date: {maturity_date.strftime('%Y-%m-%d')}") print(f"Days to Maturity: {days_to_maturity:,} days") print(f"Years to Maturity: {years_to_maturity:.2f} years") print() # Calculate yield to maturity (YTM) # For zero-coupon bonds: YTM = (Face Value / Purchase Price) ^ (1/Years) - 1 ytm = (pow(face_value / purchase_cost, 1 / years_to_maturity) - 1) * 100 print("=" * 80) print("SCENARIO 1: HOLD TO MATURITY (Nov 15, 2040)") print("=" * 80) print() print("MATURITY PROCEEDS") print("-" * 80) print(f"Face Value Payment: ${face_value:,.2f}") print(f"Total Cost Basis: ${purchase_cost:,.2f}") print(f"Total Gain at Maturity: ${face_value - purchase_cost:,.2f}") print(f"") print(f"Return on Investment: {(face_value - purchase_cost) / purchase_cost * 100:.2f}%") print(f"Annualized Yield (YTM): {ytm:.3f}%") print(f"Holding Period: {years_to_maturity:.2f} years") print() print("INTERACTIVE BROKERS FEES & COSTS") print("-" * 80) print(f"Purchase Commission: $5.00 (already paid)") print(f"Annual Custody Fee: $0.00 (IB doesn't charge for US Treasuries)") print(f"Maturity Processing: $0.00 (automatic, no fee)") print(f"Total Additional Costs: $0.00") print() print("NET PROCEEDS AT MATURITY") print("-" * 80) final_value = face_value total_invested = purchase_cost + 5 # Including commission net_profit = final_value - total_invested net_roi = (net_profit / total_invested) * 100 print(f"Maturity Value: ${final_value:,.2f}") print(f"Total Investment: ${total_invested:,.2f} (cost + commission)") print(f"Net Profit: ${net_profit:,.2f}") print(f"Net ROI: {net_roi:.2f}%") print(f"Annualized Return: {ytm:.3f}%") print() print("=" * 80) print("SCENARIO 2: SELL NOW (Oct 5, 2025)") print("=" * 80) print() print("IMMEDIATE SALE PROCEEDS") print("-" * 80) # Estimate selling costs (IB bond commission structure) # Typically $1-5 per trade for bonds estimated_sell_commission = 5.00 sale_proceeds = current_value - estimated_sell_commission net_profit_sell_now = sale_proceeds - purchase_cost - 5 # Including both commissions net_roi_sell_now = (net_profit_sell_now / (purchase_cost + 5)) * 100 # Calculate holding period return holding_days = days_held annualized_return = (net_roi_sell_now / holding_days * 365.25) print(f"Current Market Value: ${current_value:,.2f}") print(f"Est. Selling Commission: ${estimated_sell_commission:,.2f}") print(f"Net Sale Proceeds: ${sale_proceeds:,.2f}") print(f"") print(f"Total Investment: ${purchase_cost + 5:,.2f}") print(f"Net Profit: ${net_profit_sell_now:,.2f}") print(f"Net ROI: {net_roi_sell_now:.2f}%") print(f"Holding Period: {holding_days} days") print(f"Annualized Return: {annualized_return:.2f}%") print() print("=" * 80) print("COMPARISON & RECOMMENDATION") print("=" * 80) print() print(f"{'Metric':<30} {'Sell Now':<20} {'Hold to Maturity':<20}") print("-" * 80) print(f"{'Total Proceeds':<30} ${sale_proceeds:<19,.2f} ${final_value:<19,.2f}") print(f"{'Net Profit':<30} ${net_profit_sell_now:<19,.2f} ${net_profit:<19,.2f}") print(f"{'ROI':<30} {net_roi_sell_now:<19.2f}% {net_roi:<19.2f}%") print(f"{'Annualized Return':<30} {annualized_return:<19.2f}% {ytm:<19.3f}%") print(f"{'Time to Realize':<30} {'Immediate':<20} {f'{years_to_maturity:.1f} years':<20}") print(f"{'Additional Costs':<30} ${estimated_sell_commission:<19,.2f} ${0:<19,.2f}") print() print("KEY CONSIDERATIONS") print("-" * 80) print("✓ PROS of Holding to Maturity:") print(" • Guaranteed return of $50,000 at maturity (US government-backed)") print(f" • Locked-in yield of {ytm:.3f}% annually") print(" • No additional transaction costs") print(" • No reinvestment risk") print(" • Predictable cash flow in 2040") print() print("✗ CONS of Holding to Maturity:") print(f" • Capital locked up for {years_to_maturity:.1f} years") print(" • Interest rate risk (if rates rise, opportunity cost increases)") print(" • Inflation risk (purchasing power erosion over 15 years)") print(" • Liquidity constraints (cannot access funds without selling)") print() print("✓ PROS of Selling Now:") print(" • Immediate access to capital (~$24,646)") print(f" • Lock in current {net_roi_sell_now:.2f}% gain") print(" • Opportunity to reinvest in higher-yielding assets") print(" • Reduced duration/interest rate risk") print() print("✗ CONS of Selling Now:") print(" • Additional $5 commission") print(f" • Forfeit remaining ${net_profit - net_profit_sell_now:,.2f} potential gain") print(" • Reinvestment risk (may not find better yield)") print(" • Market timing risk") print() print("=" * 80) print("INTEREST RATE SENSITIVITY ANALYSIS") print("=" * 80) print() print("If interest rates RISE by 1%:") print(f" → Bond price will FALL approximately ${current_value * 0.15:,.2f} (15% for 15-year duration)") print(f" → Your position would be worth ~${current_value * 0.85:,.2f}") print() print("If interest rates FALL by 1%:") print(f" → Bond price will RISE approximately ${current_value * 0.15:,.2f}") print(f" → Your position would be worth ~${current_value * 1.15:,.2f}") print() print("=" * 80) print("RECOMMENDATION") print("=" * 80) print() print("Based on the analysis:") print() print(f"1. Your YTM of {ytm:.3f}% is ABOVE current risk-free rates (~4.5% for 10Y Treasury)") print(" → This suggests your bond is providing good value") print() print("2. With 15 years to maturity, you face significant interest rate risk") print(" → If rates rise, you could see substantial mark-to-market losses") print() print("3. Your current unrealized gain of $1,193.96 represents profit cushion") print(" → Consider your risk tolerance and liquidity needs") print() print("SUGGESTED STRATEGY:") print(" • If you don't need the capital: HOLD to maturity for guaranteed return") print(" • If you need liquidity: SELL now and lock in gains") print(" • If concerned about rising rates: SELL and reinvest in shorter duration") print(" • If rates are expected to fall: HOLD or even buy more for capital gains") print() print("Note: This is educational analysis only, not financial advice.") print("Consider consulting with a financial advisor for personalized guidance.") print() print("=" * 80) if __name__ == '__main__': analyze_strip_bond()