the coupon of the 10-Year bond issued last November is 19% and not 18.50%. Also the longer the tenor,the higher the interest rate (time value of money).An investor will not lend his money for a longer tenor and to be given a ... read full comment
the coupon of the 10-Year bond issued last November is 19% and not 18.50%. Also the longer the tenor,the higher the interest rate (time value of money).An investor will not lend his money for a longer tenor and to be given a low interest rate.The minority in parliament are just showing their ignorance!!!
Kwame 6 years ago
Well, what is the current fiscal position of our balance of payment? In determining what rate a coupon must be set, so many factors go into play, one which is time or duration..as well put the longer the duration the higher e ... read full comment
Well, what is the current fiscal position of our balance of payment? In determining what rate a coupon must be set, so many factors go into play, one which is time or duration..as well put the longer the duration the higher expected return on the yield of investors?. Given that investors also factor risk, here in the case of Ghana possibility of Default.. possibility of Default is clear where the balance of payment is low, internal revenue generation is low and one can easily mentioned the renegotiation with IMF on extension of debt bailout....these factors and other factors such as currency stability limits government ability to issuing lower coupon rate...the acticle mentioned of acceptability if the issued rate (coupon rate) per par lower lower than previous rate....the problem with that assumption is that the current interest in important in bond valuation....if the new coupon rate is lower than the previous rate, government is expect to pay less but if interest rate (central bank set) is expected to be higher in future bond holders (investors) are expected to make more profit and the opposite is true. Hence, everything would depend on market interset rate and maybe inflation if the bond is inflation adjusted.......and very little to do with coupon rate......so measuring the best set coupon rate would depend on government ability to forecast future interest rate and price levels.
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the coupon of the 10-Year bond issued last November is 19% and not 18.50%. Also the longer the tenor,the higher the interest rate (time value of money).An investor will not lend his money for a longer tenor and to be given a ...
read full comment
Well, what is the current fiscal position of our balance of payment? In determining what rate a coupon must be set, so many factors go into play, one which is time or duration..as well put the longer the duration the higher e ...
read full comment
Your better days is not tomorrow us you expect but is just on your on hands Nana red powers spritual center makes it so easy and you will never regret in your life, I help people in the following (1) instant money (2) I help ...
read full comment