I invested in the third one. I can't do the math myself but I knew I'd have to pay a premium due to the current market rate. It felt like a steep premium but in about 3 months when we receive the first coupon I will have recouped most of it.
1.In terms of calculation, you use the treasury Bond calculator for CBK and it will show you how much. But you have to interpret it . 2. If the coupon rate is more than the redemption yield, automatically, it's a premium and if the redemption yield is more than the coupon, it's a discount. 3. CBK usually analyzes the bids that have been placed and compares them to what the current market is to come up with the yield. It's a bit technical on their side
@@ivyoyori yes i had anticipated that since the last time it was opened it came out at premium of 104k so i expected to pay like 105-106k but since the prevailing market was below coupon and also it had accrued interest i expected results to be on premium and to be sincere i didn't expect to pay 110k but imagine after 3months from now i will receive my 7200ksh which isn't bad let us be sincere, for the Investors who do long term investment this was the best deal ever
@ivyoyori yes i had anticipated a premium of 105-106k because it was opened earlier and it came out also with a premium of 103k but to be sincere i didn't expect to pay 110k but beautiful thing is that on march 3 months from now i will receive my 7200ksh so this was the best deal ever for any investor like me who do long term
Note: The First bond was to be taxed 10% and not 15%
Keep us updated i love your financial literacy lessons
Thanks
Yeah...kudos keep the spirit🎉@@ivyoyori
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Thank you for your explanation. A point of correction, FXD1/2024/010 withholding tax is 10% since its initial maturity tenure was 10 yrs.
Thanks for pointing that out. Yeah. It's 10% and not 15%
Very informative 🫡🫡🫡
In other the applied interest rates in all the re opened bonds is 10% irrespective of the remaining time to redemption.That is what applies.
I made an error. It's 10 %
FXD 2024/10 according to me it had more return even if it was premium
I invested in the third one. I can't do the math myself but I knew I'd have to pay a premium due to the current market rate. It felt like a steep premium but in about 3 months when we receive the first coupon I will have recouped most of it.
That's awesome Vanessa. The third one definitely has a higher interest.
Nice one thank you. I got a question who comes up with the premium or the discount and how is it calculated i.e how do they arrive to the figure.
1.In terms of calculation, you use the treasury Bond calculator for CBK and it will show you how much. But you have to interpret it .
2. If the coupon rate is more than the redemption yield, automatically, it's a premium and if the redemption yield is more than the coupon, it's a discount.
3. CBK usually analyzes the bids that have been placed and compares them to what the current market is to come up with the yield. It's a bit technical on their side
Bonds with more than 10yrs are taxed at 10% and not 15% if i am not wrong,.so i think all 3 bonds were taxed at 10%
Ivy...the interest rates remain 10% and not what you are saying.It does not change in a reissued bond.
Ivy how do i get to book you for consultation?
Hi Gloria, charge 2,000 . Kindly book your time via this link 👉 paystack.shop/ivy-oyori
@@ivyoyori payment has been done.Thank you
Under Eunice
@@gloriaglory5510 seen it. Thanks. I have sent you an email on the next steps from my email👉 ivyoyori@gmail.com
I placed that bond 2024/10 with 100k and i paid 110167.50ksh
Did you anticipate that it was going to be a premium?
@@ivyoyori yes i had anticipated that since the last time it was opened it came out at premium of 104k so i expected to pay like 105-106k but since the prevailing market was below coupon and also it had accrued interest i expected results to be on premium and to be sincere i didn't expect to pay 110k but imagine after 3months from now i will receive my 7200ksh which isn't bad let us be sincere, for the Investors who do long term investment this was the best deal ever
@ivyoyori yes i had anticipated a premium of 105-106k because it was opened earlier and it came out also with a premium of 103k but to be sincere i didn't expect to pay 110k but beautiful thing is that on march 3 months from now i will receive my 7200ksh so this was the best deal ever for any investor like me who do long term