freeman67:


Not completely. Situations that brings about lending and borrowing are not absolute. I will say yes, where a person or people have a track record of being perpetual debtor. However, some people might just be genuinely interested in borrowing for something serious with genuine interest and laid down plans to refund it too.

emmanuelewumi:


You bought bond in the primary market at N100 with a coupon rate of 15%.

If interest rates go down to 10%, the price of your bond will appreciate to N150 in the secondary market. 15 divided by 150 will give 10%

If interest rate increases to 20%, your bond will depreciate to N75 in secondary market. 15 divided by 75 will give you 20%


The yield from your bond will tally with the prevailing interest rates.

ositadima1:


Face value is the money amount the bond will be worth at maturity; it is also the reference amount the bond issuer uses when calculating interest payments. For example, say an investor purchases a bond at a premium $1,090 and another investor buys the same bond later when it is trading at a discount for $980. When the bond matures, both investors will receive the $1,000 face value of the bond.


The coupon rate is the rate of interest the bond issuer will pay on the face value of the bond, expressed as a percentage. For example, a 5% coupon rate means that bondholders will receive 5% x $1000 face value = $50 every year.


Coupon dates are the dates on which the bond issuer will make interest payments. Payments can be made in any interval, but the standard is semiannual payments.


The maturity date is the date on which the bond will mature and the bond issuer will pay the bondholder the face value of the bond.


The issue price is the price at which the bond issuer originally sells the bonds.

ojesymsym:
Thanks for your clarifications. I think I never really saw bonds as buying in units just like shares, always saw it as a lump sum like TB, guess without that out of the way, a lot of other things did not add up.
From your explanation, a man who invest 1M at N100 per unit at a rate of 15% would have 10k units.
When the rate increases from 15% to 20%, then the price at the secondary market will become (100*15/20) N75.
Similarly, when the rate reduces from 15% to 10%, then the price at the secondary market will become (100*15/10) N150.

Since the initial quantity bought with 1 million has not changed, then the value will change accordingly as shown in the illustration below.

Confirm if this is correct sirs.

emmanuelewumi:



When there is not collateral, be prepared to either lose your money or the friendship.


You can see how Heritage Bank was begging Andy Ubah to pay back their money, because there was no collateral

emmanuelewumi:



How much did you Invest? What was the coupon when you bought? What is the tenor of the Investment?

XiaoLi:
Security: 9.8% FGN JUL 24 2045
Face Value: 100M
Price: 100Naira
Principal Amount: 100M
Coupon % : 9.8%
Yield at the time of Purchase: 9.8%
Tenor: 9,131
Maturity Date: 24 July 2045
Coupon(every 6 months until maturity): 4.9M

QuinModah:
I fired him ASAP, his inompetence stinks to high heaven.

How do you meet such tenant?
Arbitration?
What's was the ruling of this arbitration?
Is arbitration a court?

Such tenant will never pay, from experience.

Avoid the following tenants
- Contractors (They keep expecting millions from contracts that never happened, telling you how they know Sanwo-Olu and how his yet to pay for the road in Ikorodu or supplies they made to Alausa that are yet to be paid for)

- Business men (don't even make the mistake at all, before he says, "I am a bus....man", just tell him straight up, you don't give out your houses to business men, they are never truthful, mess up the house, give false information, bring more than the specified number of occupants the house can occupy)

- Pastors (it's a constant battle with them, telling church members that you are the reason for his lack of success, and when it time to pay, he tell you stories, that God will do a miracle. I would have mentioned churches but I'll let it pass)

- Lawyers (On no account should you lease to them)

- Artists ( You will spend more than the money you collected for damages and rent to put the house to a good taste, my property I lease to Asa in Surulere, I spent 950k to put the apartment in order before the current occupant could stay there)

In addition, ensure whoever you rent out the house to, their wives MUST be working. I learnt that here.

QuinModah:
I fired him ASAP, his inompetence stinks to high heaven.

How do you meet such tenant?
Arbitration?
What's was the ruling of this arbitration?
Is arbitration a court?

Such tenant will never pay, from experience.

[[s]b]Avoid the following tenants[/b]
- Contractors (They keep expecting millions from contracts that never happened, telling you how they know Sanwo-Olu and how his yet to pay for the road in Ikorodu or supplies they made to Alausa that are yet to be paid for)

- Business men (don't even make the mistake at all, before he says, "I am a bus....man", just tell him straight up, you don't give out your houses to business men, they are never truthful, mess up the house, give false information, bring more than the specified number of occupants the house can occupy)

- Pastors (it's a constant battle with them, telling church members that you are the reason for his lack of success, and when it time to pay, he tell you stories, that God will do a miracle. I would have mentioned churches but I'll let it pass)

- Lawyers (On no account should you lease to them)

- Artists ( You will spend more than the money you collected for damages and rent to put the house to a good taste, my property I lease to Asa in Surulere, I spent 950k to put the apartment in order before the current occupant could stay there)[/s]

In addition, ensure whoever you rent out the house to, their wives MUST be working. I learnt that here.

ojesymsym:
To whom it may concern

For the dollar investment. If you use this rate to invest $1K every year at 5.5%PA, you will have almost 1billion USD around year 30. My only fear is, will the bank really have that amount of USD to give you?

jmanity:


How did you get the 1billion?

ojesymsym:
To whom it may concern

For the dollar investment. If you use this rate to invest $1K every year at 5.5%PA, you will have almost 1million USD around year 30. My only fear is, will the bank really have that amount of USD to give you?

ojesymsym:
My apologies. Close to $1million dollar.

NL1960:




You initial post said $1k every year. This breakdown is showing 12k every year.

ojesymsym:
I think I messed up completely.
I inputed wrong values

NL1960:


"If you use this rate to invest $1K every year at 5.5%PA"

It was this quote in your initial post that iam pointing out. $1k every month will give that amount of almost $1B but you said $1k every year in the initial post.

NL1960:


"If you use this rate to invest $1K every year at 5.5%PA"

It was this quote in your initial post that iam pointing out. $1k every month will give that amount of almost $1B but you said $1k every year in the initial post.

NL1960:


"If you use this rate to invest $1K every year at 5.5%PA"

It was this quote in your initial post that iam pointing out. $1k every month will give that amount of almost $1B but you said $1k every year in the initial post.

Lazyyouth4u:


There is no way $1k monthly for 30 years at that rate will ever give you $1b. You won’t even get up to $1m.

OgogoroFreak:
$1k every month at 5.5% would give total investment value of $918,799.28 in 30 years.

Not even upto a million! You come mention a whole billion

OgogoroFreak:
$1k every month at 5.5% would give total investment value of $918,799.28 in 30 years.

Not even upto a million! You come mention a whole billion

condomuser:
Even the $918k over 30 years is impossible, there is no financial institution that will allow you reinvest your coupon at the same rate as original rate at any point.
Also, during some yeaes the rate may go 18 percent and slash to 5 percent for re-investing the coupon payments.

starrybaba:
Good morning everyone, I must say I appreciate each and every contribution been made here as I have been learning a lot from this platform and I will soon start putting what I have been learning into practice.

Please I want to inquire about an app called M36. Is it advisable to buy bonds through it or should I just go to the bank?

Someone should kindly educate me on the pros and cons of using the app.

Thanks to all the seniors in investment!

maishai:
During Goodluck days, I'm not holding brief for him, trills rate went as high as 19%, I now understand I should have massively invested in bonds, then when one could get as high as 17%.....,.

I now ask what made the cbn of then set such high interest rates

starrybaba:



Abeg make person help answer me @emmanuelewumi and other bosses

Lazyyouth4u:


Talk true. No lie. If you see job you go dey drive Uber? No be joblessness make you go borrow money to buy car so that your poor children no go starve?

At least we are not out in the sun driving Uber and taking insults from Lasma and riders to feed our hungry families.

If you were not a bitter and frustrated soul, you would learn a thing or two from the debate.