Interest Calculation for a Zambia Government Bond | EP 2

This document/study/presentation/video is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.

[@ianmuzaza]

"Thank you for the thorough explanations in the video. It was really helpful."

[@EveryKwacha]

Glad to hear.

[@nashochirwa2523]

This is loud and clear very straight to the point kudos

[@EveryKwacha]

Thank you

[@nellykalebwe8444]

This is great. All my questions have been answered a - z from applying for the bond to maturity. Now l can do the calculation myseof, the atual price l can pay for a bond , the coupons and everything. Thank you so much❤

[@EveryKwacha]

Happy to Know

[@cleverchisenga]

Thanks for your simplicity ❤

[@samsonchaziya5568]

This is the best explanation I have seen on UA-cam. Thanks

[@EveryKwacha]

Thank you sir

[@aubreymuwowo3010]

Simply explained. Thanks

[@EveryKwacha]

Thank you.

[@mathewsisimwaa9075]

Well explained, its fair enough and would make more investment sense if one reinvests their coupons.

[@EveryKwacha]

Very True

[@hiramcmainza6375]

Great stuff,very detailed thank u

[@EveryKwacha]

Thank you.

[@darlingtonbesa2021]

Hi there. Could you also do a video on how to calculate interest on Treasury Bills? Would really appreciate this too.

[@EveryKwacha]

Sure. I will do that in my next video. Thanks for the feedback

[@darlingtonbesa2021]

You're welcome.

[@MercyMpuku]

You are the best.

[@EveryKwacha]

Thank you

[@wellingtonchanda4067]

Thank you very much This is very helpful but kind help me understand what the new invitations says for 2024 Coupon Rate = Market Determined

[@EveryKwacha]

www.boz.zm/Bond-Prospectus-Issue-No-01-2024-BA.pdf
The New Prospectus does not show the coupon rate as that will now only be determine after the auction.

[@melanyyyh4857]

Hello, I don’t understand your n the face value figure, do you just guess any amount you want after a duration or?

[@EveryKwacha]

The face value is the amount of money you want to hold as a bond. You decide this as an investor... I want a bond with a face value of K100,000. How much will this cost me? Then you start doing the calculations. Let me know if that answers the question. I am willing to have another go at it... if you still have questions.

[@melanyyyh4857]

When you see the government auction results for February. There isn’t any cut off bid price, what figure do you use instead?

[@EveryKwacha]

Begining January 2024 Bonds are nolonger issued at a discount. They are issued at Par. In other words the Cut off bid price is set at K100. So use 100 as the cut-off bid price for all bonds... going forward. Let me know if this clarifies it for you. Otherwise, i will do a video to explain the new way of calculating bonds which was effected in 2024

[@AbrahamSaid-f4x]

How can someone start invest in bonds ,

[@EveryKwacha]

Open an CSD account at BOZ and link it to your local bank account and then start investing whenever there is an auction. Lookout for a detailed series of how to actually do this in the next videos i will be doing in the month of May 2024