learn something new today
Neither. He will be receiving a coupon of 3.0% pa on 30000. On redemption at maturity, he will receive 30000.learn something new today
based on his example, he had invested $34500 - $4013.70 = $30486.30 of which he has 300 units (or 30,000 shares). the cut-off yield is 2.7% - how much will he be collecting per year for the coupon? is it 2.7% x $30k or 2.7% x $30486.30?
will we get back this $1.00 in 122 days?
how often the coupon will be given? every 6 months?
You will receive a coupon of 1.5% on 1 Sept. That is made up of the refund of 1.00% for the period 1 March to 1 July and your interest of 0.50% for the period 1 July to 1 Sept.
As @anddrool indicated, every 6 months on 1 March and 1 Sept until redemption on 1 Sept 2024.
realised you have been asking a lot of things that can actually be found via websites leh.
wait, so he'll be getting 3% coupon based on $30,000... but effective yield is 2.7% right? because he had paid an extra $486.30 which eats into his 3%. is my understanding correct?
What’s UST?
Ya, a bit on the low side. Was expecting closer to 2.80. Strangely closing yield today is 2.74% but cut off yield is only 2.70%! Go figure!
US treasury bills.
right. for a moment i was like TerraUSD???
He paid an extra 486.3. He will get back 1.00% or 300 on 1 Sept. So net he paid extra 186.30. This to use your words “eats into” his 3.0% coupon over 26 months for a clean cut off yield of 2.70% pa.
but the reality doesn't seem like they care
i think the recent tranches already show that more people are applying for SSB. just that it is still not enough to satisfy demand
Unfortunately, the big 3 locals rely on depositors’ inertia. Further, the vast majority of depositors are either unaware of SGS bills and bonds or are intimidated by their perceived complexity. However, as @reddevil0728 mentioned, they are increasingly aware of SSBs and have begun piling into it but allocation is quantity restricted and cannot meet the demand.
