Go Back   StockMarketNigeria.com Forums > Financial products and resources > Mutual Funds, Bonds, Insurance

Mutual Funds, Bonds, Insurance Discussions on Mutual Funds (e.g The Discovery Fund, IBTC, etc), Fixed Deposits, Bonds and Insurance products

Welcome to the StockMarketNigeria.com Forums.
If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 14th January 2009, 05:28 PM
donchisel's Avatar
Rank: Senior Member
Points: 6,431, Level: 52
Points: 6,431, Level: 52 Points: 6,431, Level: 52 Points: 6,431, Level: 52
Activity: 0%
Activity: 0% Activity: 0% Activity: 0%
 
Join Date: Jun 2007
Location: Lagos
Posts: 356
Thanks: 47
Thanked 3 Times in 3 Posts
Groans: 9
Groaned at 0 Times in 0 Posts
Rep Power: 8
donchisel will become famous soon enough
Default Lagos State Fixed rate Bond

Good people,

I am new to Bonds and wish to quickly ask how it works. For instance lagos state Bond guarantees 13% on it's fixed-rate bond.

This suggests that i will get 13k per 100k inestments on the bond. And if the market value of the bond varies within period in question. What do i get?
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #2 (permalink)  
Old 16th January 2009, 07:50 PM
knightofdelta's Avatar
Forum Moderator
Rank: Senior Member
Points: 42,318, Level: 100
Points: 42,318, Level: 100 Points: 42,318, Level: 100 Points: 42,318, Level: 100
Activity: 23%
Activity: 23% Activity: 23% Activity: 23%
 
Join Date: Nov 2007
Posts: 10,175
Thanks: 528
Thanked 650 Times in 520 Posts
Groans: 18
Groaned at 5 Times in 5 Posts
Blog Entries: 11
Rep Power: 21
knightofdelta is a glorious beacon of lightknightofdelta is a glorious beacon of lightknightofdelta is a glorious beacon of lightknightofdelta is a glorious beacon of lightknightofdelta is a glorious beacon of light
Default Re: Lagos State Fixed rate Bond

Quote:
Originally Posted by donchisel View Post
Good people,

I am new to Bonds and wish to quickly ask how it works. For instance lagos state Bond guarantees 13% on it's fixed-rate bond.

This suggests that i will get 13k per 100k inestments on the bond. And if the market value of the bond varies within period in question. What do i get?
I am looking for the prospectus and yet to find it. The 13% is guaranteed and it does not matter what the price of the bonds become. The rate is based on the par value. So for your N100K you will get N13K annually even if the price of the bonds fall to N10K. At the end of the life cycle of the bond you get your N100K back plus N13K.
__________________
The Knight of Delta

"Pursue excellence and success will follow, pants down" - Ranchoddas Shamaldas Chanchad

"People do not have to believe in you for you to succeed. Work hard. When you succeed, they will believe." - Stephen Keshi
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #3 (permalink)  
Old 16th January 2009, 08:03 PM
Monwowo's Avatar
Rank: Senior Member
Points: 5,137, Level: 45
Points: 5,137, Level: 45 Points: 5,137, Level: 45 Points: 5,137, Level: 45
Activity: 0%
Activity: 0% Activity: 0% Activity: 0%
 
Join Date: Sep 2007
Posts: 375
Thanks: 25
Thanked 10 Times in 7 Posts
Groans: 0
Groaned at 0 Times in 0 Posts
Rep Power: 8
Monwowo is on a distinguished road
Default Re: Lagos State Fixed rate Bond

Quote:
Originally Posted by knightofdelta View Post
I am looking for the prospectus and yet to find it. The 13% is guaranteed and it does not matter what the price of the bonds become. The rate is based on the par value. So for your N100K you will get N13K annually even if the price of the bonds fall to N10K. At the end of the life cycle of the bond you get your N100K back plus N13K.
It is important you hold to maturity if you don't want the price volatility to affect you. The price will fluctuates with the interest rate fluctuations.
__________________
Monwowo "All too often we confuse a good company with a good stock and the two do not necessarily go together"
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #4 (permalink)  
Old 16th January 2009, 09:44 PM
hispy99's Avatar
Forum Moderator
Rank: Senior Member
Points: 86,084, Level: 100
Points: 86,084, Level: 100 Points: 86,084, Level: 100 Points: 86,084, Level: 100
Activity: 99%
Activity: 99% Activity: 99% Activity: 99%
 
Join Date: Aug 2007
Location: Chicago
Posts: 27,431
Thanks: 120
Thanked 259 Times in 210 Posts
Groans: 2
Groaned at 3 Times in 3 Posts
Rep Power: 39
hispy99 is just really nicehispy99 is just really nicehispy99 is just really nicehispy99 is just really nicehispy99 is just really nice
Default Re: Lagos State Fixed rate Bond

Quote:
Originally Posted by Monwowo View Post
It is important you hold to maturity if you don't want the price volatility to affect you. The price will fluctuates with the interest rate fluctuations.
Is there an active secondary market to trade the bonds? I don't think there's one, so you have no choice but to hold to maturity anyway.

Who knows though, there might be an active secondary market before the bonds mature.
__________________
“The market can remain irrational longer than you can remain solvent.” - John Maynard Keynes
"The one absolute requirement of a money manager is emotional maturity. If you don’t know who you are, the stock market is an expensive place to find out." - Adam Smith
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #5 (permalink)  
Old 17th January 2009, 03:48 AM
Michael's Avatar
Rank: Senior Member
Points: 10,333, Level: 67
Points: 10,333, Level: 67 Points: 10,333, Level: 67 Points: 10,333, Level: 67
Activity: 0%
Activity: 0% Activity: 0% Activity: 0%
 
Join Date: Nov 2006
Posts: 1,864
Thanks: 16
Thanked 18 Times in 16 Posts
Groans: 0
Groaned at 0 Times in 0 Posts
Rep Power: 11
Michael has a spectacular aura aboutMichael has a spectacular aura aboutMichael has a spectacular aura about
Default Re: Lagos State Fixed rate Bond

Quote:
Originally Posted by knightofdelta View Post
I am looking for the prospectus and yet to find it. The 13% is guaranteed and it does not matter what the price of the bonds become. The rate is based on the par value. So for your N100K you will get N13K annually even if the price of the bonds fall to N10K. At the end of the life cycle of the bond you get your N100K back plus N13K.
Sorry for not posting these earlier!
__________________
"It's only when the tide goes out that you learn who's been swimming naked." Warren Buffett

Last edited by Michael; 27th March 2009 at 06:43 PM.
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Reply


Similar Threads
Thread Thread Starter Forum Replies Last Post
State of the Nation nosa2 Off Topic 34700 Today 12:47 AM
Bond investment chokit Mutual Funds, Bonds, Insurance 315 24th October 2014 03:08 PM
Fixed Income Investments dynamicd Personal Finance/ Financial Planning 11 29th November 2010 12:33 PM
CSCS Numbers - Fixed format or not? pumping CSCS 8 24th August 2007 12:48 PM


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off



All times are GMT +1. The time now is 03:01 AM.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
SEO by vBSEO 3.3.0
StockMarketNigeria.comAd Management plugin by RedTyger
no new posts

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37