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Rank: Veteran Joined: 11/14/2006 Posts: 1,311
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Chaka wrote:Liv wrote:What is the real return of IFB/1/2016/15 bond?
If you bought Shs 100 face value of this bond, you bought it at a discount of Shs 6.471 and therefore you paid Shs 93.529
In the first 6 months which is equivalent to 182 days, you will be paid Shs 5.983 as interest, computed (100x12%x182/365)
If you were to reinvest Shs 5.983 at the same rate 12% for another 6 months, you would earn interest income of Shs 6.341, computed (105.983x12%x182/365) .
Total interest earned in 12 months is 5.983+6.341 = 12.324
Actual funds invested = 93.529
Return = 12.324/93.529 = 13.177%
I thought there is a payment schedule for the interest after every six months?i,e the issue of re-investing the Shs 5.983 is not there because you have to redeem it? You are right,but do you think the cash you receive after the first 6 months should be equivalent in value to the cash you will receive after the 2nd 6 months?
It is assumed you will invest this cash and get some value.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Liv wrote:Chaka wrote:Liv wrote:What is the real return of IFB/1/2016/15 bond?
If you bought Shs 100 face value of this bond, you bought it at a discount of Shs 6.471 and therefore you paid Shs 93.529
In the first 6 months which is equivalent to 182 days, you will be paid Shs 5.983 as interest, computed (100x12%x182/365)
If you were to reinvest Shs 5.983 at thoe same rate 12% for another 6 months, you would earn interest income of Shs 6.341, computed (105.983x12%x182/365) .
Total interest earned in 12 months is 5.983+6.341 = 12.324
Actual funds invested = 93.529
Return = 12.324/93.529 = 13.177%
I thought there is a payment schedule for the interest after every six months?i,e the issue of re-investing the Shs 5.983 is not there because you have to redeem it? You are right,but do you think the cash you receive after the first 6 months should be equivalent in value to the cash you will receive after the 2nd 6 months?
It is assumed you will invest this cash and get some value.
Thanks..now can you also help me out on post # 347?
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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@maka, na usicheke hii swali: Suppose one is applying for Kes. 100,000. And he pays CBK Kes.93,673 ex-discount, what will be his/her 6-monthly interest earnable? Will he/she get: 12% of 100,000? or 12% or 93,673? or 13.177% of 100,000? or 13.177% of 93,673? And on maturity, will he/she get back 100,000 or 93,676? #By the way on Sato I forgot to ask you this during the mbuzi-11 due to the thithimaa effect, though we could see you an ontrapruniewol mind.  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Impunity wrote:@maka, na usicheke hii swali: Suppose one is applying for Kes. 100,000. And he pays CBK Kes.93,673 ex-discount, what will be his/her 6-monthly interest earnable? Will he/she get: 12% of 100,000? or 12% or 93,673? or 13.177% of 100,000? or 13.177% of 93,673? And on maturity, will he/she get back 100,000 or 93,676? #By the way on Sato I forgot to ask you this during the mbuzi-11 due to the thithimaa effect, though we could see you an ontrapruniewol mind. You should declare first if you are interested in T/Bill or T/Bond. The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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jerry wrote:Impunity wrote:@maka, na usicheke hii swali: Suppose one is applying for Kes. 100,000. And he pays CBK Kes.93,673 ex-discount, what will be his/her 6-monthly interest earnable? Will he/she get: 12% of 100,000? or 12% or 93,673? or 13.177% of 100,000? or 13.177% of 93,673? And on maturity, will he/she get back 100,000 or 93,676? #By the way on Sato I forgot to ask you this during the mbuzi-11 due to the thithimaa effect, though we could see you an ontrapruniewol mind. You should declare first if you are interested in T/Bill or T/Bond. T/Bill ni rahisi sana kama yule mwanamke @kiraitu almost raped. I am talking about T/Bond and especially the current IFB and more so the Tap sale. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Impunity wrote:jerry wrote:Impunity wrote:@maka, na usicheke hii swali: Suppose one is applying for Kes. 100,000. And he pays CBK Kes.93,673 ex-discount, what will be his/her 6-monthly interest earnable? Will he/she get: 12% of 100,000? or 12% or 93,673? or 13.177% of 100,000? or 13.177% of 93,673? And on maturity, will he/she get back 100,000 or 93,676? #By the way on Sato I forgot to ask you this during the mbuzi-11 due to the thithimaa effect, though we could see you an ontrapruniewol mind. You should declare first if you are interested in T/Bill or T/Bond. T/Bill ni rahisi sana kama yule mwanamke @kiraitu almost raped. I am talking about T/Bond and especially the current IFB and more so the Tap sale. 12% of 100,000...paid semi annually...(6000 1st 6 months) + (6000 next 6 months) possunt quia posse videntur
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Rank: Elder Joined: 12/7/2012 Posts: 11,937
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Impunity wrote:jerry wrote:Impunity wrote:@maka, na usicheke hii swali: Suppose one is applying for Kes. 100,000. And he pays CBK Kes.93,673 ex-discount, what will be his/her 6-monthly interest earnable? Will he/she get: 12% of 100,000? or 12% or 93,673? or 13.177% of 100,000? or 13.177% of 93,673? And on maturity, will he/she get back 100,000 or 93,676? #By the way on Sato I forgot to ask you this during the mbuzi-11 due to the thithimaa effect, though we could see you an ontrapruniewol mind. You should declare first if you are interested in T/Bill or T/Bond. T/Bill ni rahisi sana kama yule mwanamke @kiraitu almost raped.I am talking about T/Bond and especially the current IFB and more so the Tap sale. You don't remember the argument on Wazua whether T/Bills in earned upfront or at redemption and there was no conclusion to it. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Angelica _ann wrote:Impunity wrote:jerry wrote:Impunity wrote:@maka, na usicheke hii swali: Suppose one is applying for Kes. 100,000. And he pays CBK Kes.93,673 ex-discount, what will be his/her 6-monthly interest earnable? Will he/she get: 12% of 100,000? or 12% or 93,673? or 13.177% of 100,000? or 13.177% of 93,673? And on maturity, will he/she get back 100,000 or 93,676? #By the way on Sato I forgot to ask you this during the mbuzi-11 due to the thithimaa effect, though we could see you an ontrapruniewol mind. You should declare first if you are interested in T/Bill or T/Bond. T/Bill ni rahisi sana kama yule mwanamke @kiraitu almost raped.I am talking about T/Bond and especially the current IFB and more so the Tap sale. You don't remember the argument on Wazua whether T/Bills in earned upfront or at redemption and there was no conclusion to it. Really why wasnt there a conclusion? possunt quia posse videntur
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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maka wrote:Angelica _ann wrote:Impunity wrote:jerry wrote:Impunity wrote:@maka, na usicheke hii swali: Suppose one is applying for Kes. 100,000. And he pays CBK Kes.93,673 ex-discount, what will be his/her 6-monthly interest earnable? Will he/she get: 12% of 100,000? or 12% or 93,673? or 13.177% of 100,000? or 13.177% of 93,673? And on maturity, will he/she get back 100,000 or 93,676? #By the way on Sato I forgot to ask you this during the mbuzi-11 due to the thithimaa effect, though we could see you an ontrapruniewol mind. You should declare first if you are interested in T/Bill or T/Bond. T/Bill ni rahisi sana kama yule mwanamke @kiraitu almost raped.I am talking about T/Bond and especially the current IFB and more so the Tap sale. You don't remember the argument on Wazua whether T/Bills in earned upfront or at redemption and there was no conclusion to it. Really why wasnt there a conclusion? @Thitimaaa,T/Bill interest is earned at REDEMPTION, wachana na wale wazee kina @mukiha etal...who will pay you money upfront in any business in this world? If for instance you applied for 182 day papr for amount of 100,000 and the rate was 10% and there was no TAX, then you will pay CBK Kes. 95,251...at maturity you get paid from CBK kes. 100,000 and therefore take with you profits/interest of (100,000-95,251) = Kes 4,749. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Impunity wrote:jerry wrote:Impunity wrote:@maka, na usicheke hii swali: Suppose one is applying for Kes. 100,000. And he pays CBK Kes.93,673 ex-discount, what will be his/her 6-monthly interest earnable? Will he/she get: 12% of 100,000? or 12% or 93,673? or 13.177% of 100,000? or 13.177% of 93,673? And on maturity, will he/she get back 100,000 or 93,676? #By the way on Sato I forgot to ask you this during the mbuzi-11 due to the thithimaa effect, though we could see you an ontrapruniewol mind. You should declare first if you are interested in T/Bill or T/Bond. T/Bill ni rahisi sana kama yule mwanamke @kiraitu almost raped. I am talking about T/Bond and especially the current IFB and more so the Tap sale. T/Bond is easier than T/Bill. The opposite of courage is not cowardice, it's conformity.
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