isangjohnson:
If 20m is used to buy 19m worth of bond and coupon rate calculated based on 19m and not 20m, how much will be your gain should you decide to hold it to 2yrs maturity period?
Please educate me.

Its 2yrs bond but will mature in a yr and six months time. It's not possible to increase or reduce it except u decide to sell before maturity. The yrs are stated clearly during the transaction period but may not get to the stated time before maturity. This is only applicable to secondary market FG bond.

I understand fgn savings bond has a minimum of 5k with quarterly interest disbursement but I wish to ask, if 10m is invested in it, will the same formula used to calculate fgn bond be used for fgn savings bond?
Eg: In fgn bond, 20m worth will have coupon rate of 19m.
In fgn savings bond, will 10m worth have a coupon rate of 9m?

isangjohnson:
Though I'm not an authority in this line of investment, but I guess this must be Fgn Bond.

Fgn Bond

needful:


So are u saying? u arent comfortable loosing 1m to gain 4,510,000? in one yr and 6months. Recheck oga because TB is currently at 3.5% oooooo

How can one buy at discounted rate and not premium rate?? What is current rate and at what coupon per annum can one buy now??

isangjohnson:
I understand fgn savings bond has a minimum of 5k with quarterly interest disbursement but I wish to ask, if 10m is invested in it, will the same formula used to calculate fgn bond be used for fgn savings bond?
Eg: In fgn bond, 20m worth will have coupon rate of 19m.
In fgn savings bond, will 10m worth have a coupon rate of 9m?

The example given by needful can only happen in the secondary market.

In the primary market N20 million will buy N20 million bond

thebargainhunte:


How can one buy at discounted rate and not premium rate?? What is current rate and at what coupon per annum can one buy now??

Always monitor and check the pricelist of bonds from NSE and FMDQ

emmanuelewumi:


The price on the price list will show that, but most bonds are currently selling at a premium

Sir, what is the prevailing rate presently?? I heard that you can lose your initial capital when you terminate the contract before maturity. I believe that it is so when you buy at premium rate and not at discounted rate. Am I right sir?

emmanuelewumi:


Always monitor and check the pricelist of bonds from NSE and FMDQ

I don't even understand it from there.

I now understand. Thanks

thebargainhunte:


Sir, what is the prevailing rate presently?? I heard that you can lose your initial capital when you terminate the contract before maturity. I believe that it is so when you buy at premium rate and not at discounted rate. Am I right sir?

It depends on the bond you are buying we have series of bonds in market which have different durations and maturity periods. Visit your Stockbroker for further inquiries or you can buy fixed income funds which have different bonds in their portfolio from any asset management company or Investment house.

thebargainhunte:


Sir, what is the prevailing rate presently?? I heard that you can lose your initial capital when you terminate the contract before maturity. I believe that it is so when you buy at premium rate and not at discounted rate. Am I right sir?

You can't lose your initial capital if you hold till maturity.

emmanuelewumi:


It depends on the bond you are buying we have series of bonds in market which have different durations and maturity periods. Visit your Stockbroker for further inquiries or you can buy fixed income funds which have different bonds in their portfolio from any asset management company or Investment house.

Alright sir, thank you.

ibechris:




To watch how unintelligent u have been all these years.

Savage master�

The G.O.D. (Good Ole Days)
Even Bitcoin dey para lately. Let's all be careful what we do with our funds at this peculiar season my people.

needful:


Sir I use Morgan and stanbic. Gtb, access, uba, zenith, etc. You advised on this stock and I grabbed zenith at 16n, gtb at 25 and access at 5n. It pained me that I didn't see money to buy una.

Sweet deal. Hope you haven't sold your Access.

My cash has been lying untouched for two months now.
Gurus in the house should please tell me how mmf works.
What is the current rate now?
How secure is my principal, should I decide to invest in it?
What are the tenors?

emmanuelewumi:


It depends on the bond you are buying we have series of bonds in market which have different durations and maturity periods. Visit your Stockbroker for further inquiries or you can buy fixed income funds which have different bonds in their portfolio from any asset management company or Investment house.

u are a blessings to this thread..free MBA finance and investment degree..for free

Buhahahaha My no-nonsense detector just picked some bullcrap

emmanuelewumi:


The example given by needful can only happen in the secondary market.

In the primary market N20 million will buy N20 million bond

In the primary market, there are sometimes Re-issue of existing bonds whose prices are not at par. I have bought above and below par in the primary market in the past. I think it's because of maturing coupons on the Re-issue bonds. That's where the dirty and clean price or the yield to maturity tricks comes into the calculation. Kind of complex for a newbie. Only a newly issued bond in the primary market will you buy at par or say N20 million will buy N20 million bond.

make una carry una money go do real Biz that's why d rates were lowered.

for those mongering for shares, don't go buy shares DT will crash ur remaining money. this economy is highly unstable under this buhari?

for those who want to buy houses hoping to get rent, remember many tenants in this harsh economy dey find it hard to pay rent. don't go use ur hard earned money do father Xmas for people.

go do real Biz. if u can fry akara fry. if na service Biz u can, do it. if na manufacture, do it.

isangjohnson:
My cash has been lying untouched for two months now.
Gurus in the house should please tell me how mmf works.
What is the current rate now?
How secure is my principal, should I decide to invest in it?
What are the tenors?

https://www.nairaland.com/1912965/mutual-funds/213

Thanks

isangjohnson:
My cash has been lying untouched for two months now.
Gurus in the house should please tell me how mmf works.
What is the current rate now?
How secure is my principal, should I decide to invest in it?
What are the tenors?

I swear, it is demoralizing, MMF pays Quarterly, and there are different types of MMF, some MMF invest in Equity (these are risky but with higher returns), while others invest in TB and other fixed Assets (these are less risky and claim to preserve your capital), to get their rate you may need to contact them directly, it is usually between 9% - 11%

seyisanya:

Sweet deal. Hope you haven't sold your Access.

No Bro, all thanks to God and Sir Emma. I follow him on stock thread quietly and buy. U can do that as well.

richforever123:


I swear, it is demoralizing, MMF pays Quarterly, and there are different types of MMF, some MMF invest in Equity (these are risky but with higher returns), while others invest in TB and other fixed Assets (these are less risky and claim to preserve your capital), to get their rate you may need to contact them directly, it is usually between 9% - 11%

What type do I have with stanbic then? my money gained fixed incremental sum daily. From my calculation it gained 8% p.a. hence I get the daily fractional increment as monitored from the App. Not bothered with the little return though just using it to aggregate funds till Jan ending.

DigitalMallam:


What type do I have with stanbic then? my money gained fixed incremental sum daily. From my calculation it gained 8% p.a. hence I get the daily fractional increment as monitored from the App. Not bothered with the little return though just using it to aggregate funds till Jan ending.

FBN Asset Management will give you 10%, FSDH Asset Management is still around 11%.

They lend some of their customers money under their Asset Backed Lending Scheme at 20% per annum. I think that is one of the reasons why their money market fund is still at 11%.

Minimum loan is N5 million, collateral are Treasury Bills ,money market funds, Eurobond Fund and blue Chip shares.

emmanuelewumi:


FBN Asset Management will give you 10%, FSDH Asset Management is still around 11%.

They lend some of their customers money under their Asset Backed Lending Scheme at 20% per annum. I think that is one of the reasons why their money market fund is still at 11%.

Minimum loan is N5 million, collateral are Treasury Bills ,money market funds, Eurobond Fund and blue Chip shares.

Im planing to dump all my tbills money on FSDH mmf till further notice. Since I don’t understand bonds and stocks and won’t have time to follow them up. I hope that wont be bad idea.

Meanwhile thanks for your contributions on this thread. Worth big money..

chigo4u:

Im planing to dump all my tbills money on FSDH mmf till further notice. Since I don’t understand bonds and stocks and won’t have time to follow them up. I hope that wont be bad idea.

Meanwhile thanks for your contributions on this thread. Worth big money..

It is one of the biggest Merchant Banks in Nigeria . I have my money market funds with them and FBN Asset Management a subsidiary of FBN Merchant Bank

So it's not First Bank Nigeria that owns it?

emmanuelewumi:


It is one of the biggest Merchant Banks in Nigeria . I have my money market funds with them and FBN Asset Management a subsidiary of FBN Merchant Bank

TotoNaRubber:

So it's not First Bank Nigeria that owns it?

First Bank is the parent company of FBN Merchant Bank.

The merchant bank is for High Networth Investors and business people, you will need a minimum of N20 million to open a business account with them.

emmanuelewumi:
N25 million will buy you 5,800,000 of UPDC REIT and will give you an income of N3.3 million by October 2020.

Google UPDC REIT they have investments in a number of highbrow property valued at over N30 billion and also have over N5 billion of part of the rent collected over the years invested in highly liquid assets suchTreasury Bills, money market funds, commercial papers, FG bonds, State bonds and corporate bonds

Thanks for the info.Am also looking at the 2037 govt bond but have no idea about that. I may forgo the house and go straight for that bond with 40m next year but my problem is that i dont know if i can be able to subscribe and even if i would,how much percentage would i be getting??

needful:


It's TRUE that we do not agree for reason best to known to us but try that bond. The 2yrs bond is actually a year and 6months and the good thing is that my first coupon payment will arrive on the 15th of this January and next one will be in July. The mathematics is very clear to me now as in, u use 20m to buy a bond worth of 19m on the coupon rate of 14.5%. U get 14.5% of 19m quarterly and upon maturity, u will receive 19m instead of 20m. It's as simple as that from the recent bond I did. If u can queue into that particular 2yrs bond which is actually a yr and six months, ur first coupon will still arrive in January 15th.

Hello,which bond currently offers this?? Can the interest be compounded??