would you like to invest in bonds?
the bond fund is suitable for investors seeking a better level of capital stability than equities markets,but also a higher yield than money mareket funds,the fund aims to achieve long term capital growth as well as a reasonable level of income at a low risk contact me ruth at icea 0729559885 and i will give you more information

My two cents

- you invest in a five year bond, 2 yrs down the road you feel you need the cash to pay say school fees for your children. You can sell the bond -in the bond market and get the money you had invested. The new buyer(from you)will get the interest payments on the bond for the remaining two years
- in the meantime, the two years that you held the bond you would have been getting interest payments every six months or as per the terms of the bond
- if a bond is reopened, that allows you to invest in the same bond by adding an amount say 100k, the bond if it reopens after six months of intial floatation will have a lifespan of four and half years to maturity and does not affect the original investment of the full five year bond

Hope I make sense

Yes minus the applicable withholding tax of 10%, usually longer termed bonds attract lower tax than short and medium term bonds. The interest will be paid semi-annually so divide the interestpaid per year by 2. Infrastructure Bonds are withholding tax free. Govt securities show maturity date, interest rate, interest pmt dates, withholding tax etc

By way of example the 30 yr bond was sold at a discount ie for every 100/= you actually paid less than 100/= meaning the actual interest (in my case at my price) was 13.52%
There is also provision for discounting the bond ie exiting. This normally is when you are unable to sell in the bond market, CBK will buy back the bond. Visit the CBK website to see how discounted price is calculated. However this is punitive and you will lose about 3% on prevailing market rates.

@ amolo which 30 year are you talking about the re-opening?and what happens when you re disount at such a time when rates are way up e.g the 30 year is currently trading at around 15.5%

@ Hunderwear all bonds trading on the secondary market are now at a discount...a paper like 2/8/5 (around 2 years remaining) is trading @ 11.8-12% crazy rates...

Yes - 15500 per year @15.5% interest but after taxes at 10% you get 13950 and since there will be two semi annual interest pmts you get 6975 every six months for 30 years

Read something about bonds here http://www.contrarianinv...hard-by-toxic-bonds.html

[quote=the deal]Read something about bonds here http://www.contrarianinv...ard-by-toxic-bonds.html[/quote]
Am interested in the 30yr bond does it mean ths is the time to buy when the rate is high i.e 16.3%?Are they likely to go up or lower going forward

Maka,

The with holding tax for any treasury bonds that are mauturies of ten years or more is 10%. This amendment was introduced by Uhuru Kenyatta about 2-3 years ago.