*First ever post*

A financial advisor recently purchased an individual corporate bond on the secondary market and I'm trying to figure out if it was a bad investment. I want to make sure I am understanding the math correctly before I bring up my concerns with them. Approximate details are below, please let me know if my math is off or if I'm misunderstanding bonds.

Face Value: 35,000

Price paid: 38,400

Yield: 3.7%

Duration: 3 years

Federal Tax Bracket: Likely 22% (it is held in a taxable account)

Based on running the numbers, it doesn't seem like a great deal:

Interest (total): 35,000 * 3.7% * 3 years = 3,885 (1,295 / year)

Return of face value at year 3: 35,000

Total Return (pre-tax): 38,885

Return minus price paid: 38,885 - 38,400 = 485 (pre-tax)

Return minus price paid and taxes:

Taxes (total): 3,885 * 22% * 3 years = 855 (285 / year)

38,885 - 38,400 - 855 = -370 (after tax)

Based on my math it seems like I'll have a negative after tax bond return of $370 over 3 years, while also taking some (albeit low) credit risk.

If this is the case, I want to discuss future bond purchases with them. My sense is that an investment grade corporate bond fund/ETF could have a higher yield and potentially even less credit risk.

Thanks so much!