Treasury Bonds

Obligacione Thesari

Treasury Bonds

Your benefits if you choose Treasury Bonds

  • Treasury bills are offered in the maturity terms of: 2, 3, 5, 7 and 10 years.

  • Treasury bills are issued with “par value”, meaning that the purchase price is equal to 100% of the nominal value.

  • At maturity, the holder of the Bonds is paid their nominal value.

  • When purchasing the Bonds the client is provided with a certificate of ownership or a certificate of the transactions performed with them.

  • The Offer Amount of Bonds is divided as follows: 20% for non-competitive offers and 80% for competitive offers.

  • If the demand is higher than the respective bid 20/80, then the pro-rate element is applied on these amounts.

  • The interest (coupon) obtained from this investment in bonds is paid every 6 months.

More on Treasury Bonds

  • Issue Date – The date on which the Treasury Bonds are issued. On this date occurs the transfer of money from the buyer to the issuer while the securities pass from the issuer to the buyer.

  • Maturity Date – The date when the term for which the relevant Obligation has been issued, ends. This is the date on which the Issuer of Treasury Bills (Ministry of Finance) pays the nominal value to the Bondholders.

  • Nominal Value – The amount paid to the client on the maturity date of the security.

  • Coupon – Interest received from the Investment in Bonds, which is paid every 6 months.

  • C = Vn * i * 180/360


C – Coupon;

Vn – Nominal Value

i – Interest rate expressed on an annual basis