Sparkles003:

pls what is fgn bond and how does one go bout it.

https://www.nairaland.com/1167218/how-invest-federal-government-bonds that is the link you capital is secured but you have to be patient before you start reaping. you can start with the minimum of 10,000

Themaingate:
I promise you there is no single business like that except you are ready to loose 90% of the money


Make sure you don't put the money into forex,betting site, ebook or mlm or

Your best bet is to leave it in a fix deposit or ad money to it and buy a plot of land in a cheap area and leave it to appreciate

Fixed deposit for a 1year period on N100,000 will yield less than N8,000 (before 10% tax) in any Nigerian bank.

IME1:


how is it done and how long would it take to get your profit. also what re d risks

This is the third part of my series on fixed
income investments. A fortnight ago, we
discussed investing in Treasury Bills. Today, I
will guide you through investing in FGN
bonds.
What is a bond?
A bond is a contract between a lender and a
borrower, whereby the borrower agrees to pay
the lender interest and repay principal upon
maturity.
What is an FGN bond?
FGN bonds are debt instruments issued by
the Federal Government of Nigeria for an
agreed period of time. The investor lends an
amount of money to the government and
earns interest on the investment until the
maturity of the bond when the principal will
be returned.
What are the benefits of an FGN bond?
1. Interest received on FGN bonds is not
subject to tax.
2. Provides a stable income stream when held
to maturity.
3. Repayment is guaranteed at the maturity
of the bond.
4. FGN bonds can be used as collateral.
5. It is easily tradable as it is quoted on the
Nigerian Stock Exchange and can also be
traded over the counter.
Who can invest in FGN bonds?
Anyone can invest in a FGN bonds. They can
be individuals or corporate bodies.
When are FGN bonds issued?
The government sells bonds via the Debt
Management Office at a primary auction.
Freshly issued bonds usually take place on
the third Wednesday of every month.
What are the bond maturity terms?
FGN bonds have maturity years ranging from
five to 10 or 20 years. The maturity of a bond
is the number of years remaining for an
already issued bond to be due for payment of
principal.
Where and how do I invest in FGN bonds?
You can invest in bonds through a primary
dealer/market maker. PD/MMs can be banks,
investment houses, brokers etc. To invest,
simply approach your chosen PD/MMs and
fill a form including your personal
information, bank details for payment of your
interest, CSCS no’s, the amount you wish to
invest, including your bid interest rate etc.,
and then sign. You can invest a minimum of
N10,000 and multiples of N1,000 thereafter.
Why do I have to bid interest?
FGN bonds are sold via an auction system
where investors quote interest rates for bonds
they wish to buy. As such, bond applications
with interest rates that are below the
minimum average interest rates otherwise
called the marginal rate quoted are accepted
and those higher may be rejected. For
example, if the marginal rate is 12 per cent,
then bids below 12 per cent will be accepted.
Therefore, different investors can have
different interest rates provided it falls below
the minimum average bid price. Someone can
have 10 per cent, another 11 per cent, nine
per cent, 10.5 per cent etc.
What is the marginal rate for bonds and how
does it work?
Bonds are like any other financial assets and
are affected by interest rate pressures. As
such, despite the coupon rates, the FG
indicates it will pay. Bond buyers and sellers
determine the price of a bond based on its
expected yield. For example, FG offers for
sale FGN bond with a coupon rate of 10 per
cent. Thus, N100 units (bond price) of the
bond will earn N10 in coupon interest.
However, when you buy, the marginal rate
determines the price you pay. So, if the
marginal rate is 13 per cent, you pay N76.9
for a bond with a face value of N100 per
unit. This is derived by dividing the fixed
coupon (N10) by the expected yield of 13 per
cent (10/0.13) to arrive at N76.9. As such,
the N10 coupon that will produce a yield of
13 per cent will be based on a price of
N76.9. Basically, when the yield is higher
than the coupon, the bond price is sold at a
discount and when the premium is higher
than the yield, the bond price is sold at a
premium. The price or value of a bond is
therefore determined by the yield.
What other factors affect bond price?
A. The credit status of the issuer.
B. Forces of demand and supply of such
securities.
C. The inflation and interest rate movements.
Is there a secondary market?
You can buy or sell bonds in the secondary
market. So, for those who do not wish to hold
to maturity they can just go to the OTC
market on the floor of the Nigerian Stock
Exchange and trade.
How quickly can I convert bonds to cash?
If you do not wish to hold to maturity, you
can convert bonds to cash by selling it on
the secondary market through your PD/MMS.
When is the interest paid?
The coupon interest on FGN bonds is paid
semi-annually (twice a year) and will be
credited to the account that you indicated
when you filled the form.
Can my interest payments be rolled over on
top of the principal?
The coupon is not rolled over automatically.
It is credited to your accounts as cash.
However, you can then use the cash to
purchase the next round of bond sales should
you want to enjoy the benefits of
compounding interest.

Kockane:
To the person above me, congrats on your FTC... I live to fight another day. Therefore, in the spirit of celebrating second-best, I want to dedicate this space to Monsura, my neighbour's house maid. Nobody pleasures me the way you do. I also want to let you know that dat belle nor be my own o! Thank you.

Crook!!!!Naija thug...No wonnnnnder

sluvy4tune:



I am not sure banks pay upto this amount.
beside he bears no risk
Whether i make profit or not his 7% is certain !

Except for the Op. But as for me, thanks but NO THANKS, i think i will pass.

gracymicky:
Send d money to me

Nooo....u kno worth am at all....i saw ur pix, u look like MICKY...Lol

sluvy4tune:



I am not sure banks pay upto this amount.
beside he bears no risk
Whether i make profit or not his 7% is certain !

Except for the Op. But as for me, thanks but NO THANKS, i think i will pass.

kenneth348:
Try online bet...like "betnaija" "nairabet" "winasbet". It does not take much time. U must win before d 100k is finished . Am serioud tho.[color=#990000][/color]

chisos. ooo see witch


..erigha con see ur brother oo

Yungwizzzy:
I want to know how possible is it to invest a 100k and make cool cash without raising a arm

I'm not lazy, but I've got a job which takes all my time. just want to put this certain amount into a RELIABLE venture and make profit

If you got an idea please share. risk(s) should also be mentioned

Thanks

Did you say $100k or N100k ?

If you don't supervise your business, you lose. I am not comfortable with that aspect.

But I can pay you N3,000 per month if you invest in my business. That's your profit.

I might wanna do like some lose 500k on this please any advice...real and geniun one please

Intendy:

nice advice dear

Play nairabet

send it 2 ma acc0unt

I might wanna do like some lose 500k on this please any advice...real and geniun one please

ifyalways:
Treasury Bills .

"Cool cash" is relative but with T.bills, your capital is safe and income is guaranteed.

Guy let me give u crew of how far u can use the 100k and make profit without involving ur time much...invest it on softwares, if your in Lagos go to computer village and negotiate with the major software dealers, they will be produciing the softwares for you @ rate of N50 for one while you re-sell @ rate of N100 for one, all you needs to do is make contacts with many book shop & computer accessories shops far from computer village and negotiate with them, you will be supplying them the softwares, they will be selling @ rate of N150 per one.. Believe me you will sell a lot especial games/anti virus and office applications, people will patronize them because going to computer village to buy software will cost them extra more than N500 for fare. Note: make sure ur producing quality softwares that will enable them trust u more.. ( i did this business during my university days, though i stays in PH but buy the softwares from Lag & it will be waybill for me) i made more than a million naira from software business before i back off when i joined oil company. Bro u can give it a try: Gudluck

Kockane:
To the person above me, congrats on your FTC... I live to fight another day. Therefore, in the spirit of celebrating second-best, I want to dedicate this space to Monsura, my neighbour's house maid. Nobody pleasures me the way you do. I also want to let you know that dat belle nor be my own o! Thank you.

hahahaha u be self-servicer honestly

Why not buy okirika clothes

If you are not too risk averse, I can manage a forex trade account on your behalf right away with guarantee. You can reach me on 08162868544.

gracymicky:
Send d money to me

Oya send your account number...[color=#006600][/color]

ggrin:
Invest am here www.xvideos.com www.xxxvideo.com www.pornhub.com www.watchmojo.com www.hiphopnaija.com www.mofos.com www.waptrick.com

smh²

Sk

Okay. I'll comment when I wake up ... *snore*

All you have to do is buy a very cheap plot of land in d next 5 ro 6 years seel it and u will make your money maybe not as much as you want sha ......No fall mugu sha

icelord:
Guys today na ma bday o... Me nd one guy bet say i no go get up to 100likes today.... Abeg, help me to prove him wrong

you for no beg now then u 4 no how far.

. Eh eh.... help me tell that guy to use that him 100k buy shares for any company or bank or

Use start 404 biz, shikina!!!

Donate am to the poor and pray for more.......you will surprised

Yungwizzzy:
I want to know how possible is it to invest a 100k and make cool cash without raising a arm

I'm not lazy, but I've got a job which takes all my time. just want to put this certain amount into a RELIABLE venture and make profit

If you got an idea please share. risk(s) should also be mentioned

Thanks

Lend me 2,000. I'd get a domain name, and make nothing less than 50k a year after getting the domain name.

tellwisdom:
So since you've been working all your life, Na 100k u fit raise?? .....money wey no reach me drink beer with friends Na em this one wan invest, even dey show big man join ....Aruuu

Shut the phuck up!

This is my opinion..

Since you have a job at the moment,you can get a land at a less developed area provided there's hope for development soon enough when you'd need your money.
This is real.. Years ago,a relative got a plot of land around where we stay presently for 100,000..
This area developed so fast and just last week,he sold that piece of land for 1.2million naira.
It depends on you though..

#myhumbleopinion
Criticismisallowed

advocates:
Honestly, I have over N700,000 lying idle in my bank acc undecided what to do with it. Would be glad you assist.

Give me your native state and where you are living before I can know what to say.

Kockane:
To the person above me, congrats on your FTC... I live to fight another day. Therefore, in the spirit of celebrating second-best, I want to dedicate this space to Monsura, my neighbour's house maid. Nobody pleasures me the way you do. I also want to let you know that dat belle nor be my own o! Thank you.

Dis is 1 of d reasons y I luv nairaland

chachazzy:

Except for the Op. But as for me, thanks but NO THANKS, i think i will pass.

OK you have a choice bro.