Seun:
Pls ask for this on a new thread since this thread is for discussing tbills.

coderXO: No investment is risk free.

With respect to this thread, tbills are loans to a govt.

Should the govt fail, you might be holding useless paper.

Investing directly by yourself or (indirectly) via a fund, you bare the same risk. Buying through a fund, you have handed the cash over to a guy ( fund manager) and said "hey" buy for me...


A second level of risk is added by buying via a fund if the fund is poorly managed. The govt of the country didn't fail and is paying its debts, however, the guy (fund) you handed your money is bad in his accounting, management or whatever else.


Having said that, these "guys" (funds) are regulated by the SEC. You would also do your due diligence to hand your money to the more trusted "guys"


Chances are Nigerian govt "won't" do a total collapse in the next 2 years- and Stanbic ( or FBN Capital or InvestmentOne) "will" manage their cash and portfolios properly.


Not totally risk free, but low risk.


Peace.

Desanta:
Dear xxxxx
We wish to inform you that your bid for a Treasury Bill of xxxxx with reference number 110140407485 was successful. Full details below 
Ref. Code110140407485
Principal xcxxxx
Rate 9.50%
Tenor91 Days
Bid Date7/24/2014
Maturity Date10/23/2014
Thank you for choosing FirstBank. 

sunnydayasaba: Gurus in d house hv got some issues, its my first time investing in TB with access bank, so am confuse, I need ur help to interpret this breakdown very well pls.

bid date: 24/7/2014
maturity date: 9/10/2014
tenor: 77 days
discount rate(p.a): 9%
amt (face value): 500k
interest amt: 9,493.15
discounted value: 490,506.85
amt at maturity: 500k
bank charge: 131.85

The problem here is that i was made to understand that 9,493.15 is the interest that will be paid to me and its has been paid already to me even before the maturity date. Now i need to know if that's actually correct, because I thought am supposed to be paid more. I choose the 77 days period because of the low interest rate. Pls gurus in the house help clarify this to me.......I knw is not wise posting details here, but i had no choice because nairaland is more accessible to me than anybody that could have cleared me on this issue.


waiting for responses pls.

azpunpin: I need a thorough explanation in calculating the interest amount for 5Million @ 9% Interest rate, I want to know how much exactly I am to receive as interest for 91days maturity.

inze:
funny enough . . .

inze:
No offense but if you had invested 1hour or less to read through the thread, you'd not need to ask any question at all.
Nevertheless, see below for calculation to the best of my understanding.
9% of 500k over 77days investment period sums up to:
9/100 = 0.09
multiplied but 500k = 45,000
The said 45k is supposed to be your interest if you had invested for 365days.
Now divide 45k by 365 to get interest rate per day = 123.287
interest rate per day multiplied by number of days invest for = 123.287*77 = 9493.150
Interest = 9493.150
Am sorry i had to go all elementary on this so you can understand it better.

inze:

No offense but if you had invested 1hour or less to read through the thread, you'd not need to ask any question at all.

Nevertheless, see below for calculation to the best of my understanding.

9% of 500k over 77days investment period sums up to:

9/100 = 0.09
multiplied but 500k = 45,000
The said 45k is supposed to be your interest if you had invested for 365days.
Now divide 45k by 365 to get interest rate per day = 123.287
interest rate per day multiplied by number of days invest for = 123.287*77 = 9493.150
Interest = 9493.150

Am sorry i had to go all elementary on this so you can understand it better.

sunnydayasaba:


Alright, Thanks very much, its very clear nw.

But i was told 365 days maturity period the interest rate was different and above 9% so why is that? All the Tenor has different interest rates so i was told.

azpunpin:

Not as funny as you think, I was thinking 9% should be the interest rate but after reading the information below which makes me think differently now, which is why I am asking someone to explain better.

inze:

Yes, they do

sunnydayasaba:


Sorry to bother you again,

Now i understand my part very well, But how about the different interest in other tenors?

inze:

funny enough . . .

princeuk21: lol

inze:

My Oga ^{at the top}, i hail o

princeuk21: Advice: investing 1kobo in treasury bills pls read from page 1 to the current page dont just invest and later run to us to seek advice pls be wise!

Bamz: Fighting everywhere, in Israel, in Northern Nigeria...on Nairaland too. Why can't we just discuss Tbills without hurling insults? I don't care about who drew first blood. We all must learn to ignore some things, that's called maturity.

sunnydayasaba:



Keep ur so-called advice to urself....Big man that invests 1 Billion....Myopic brain...If u have nothing meaningful to say, jst stay away instead of making a f^^l of urself....Nobody is asking u for any advice, Shove it into ur a$$

pappilo:

But u go school na!

The answers to these elementary questions you are asking are right there on page 1 of this same gaddem thread.

desireoge: @Sunnydayasaba ur woman dey try o. Can't u take corrections? U'll insult pple n say they're insulting u. Nawa o!

dagr8: lol......
@sunnydayasaba...what princeuk is trying to say is that you can get ample knowledge about NTB and answers to your questions,if you can invest "little" time to read from page 1. Is an advice..A good one I believe.
BTW...How is Asaba?

Gistdutch: Pls anybody with today's bidding result ?