Frequently Asked Questions
Bonds
How does the settlement of Bond works?
This is an illustration on how the settlement of a bond works.
For example, SGD 250 000 Corporate Bond was bought at the price of 102.00 % (of the principal amount) on 23 March 2015. (Trading account to be pre-funded) It carries a coupon of 5.90% per annum and matures on 17 July 2017. The corporate bond was issued on 18 July 2014.
Additional information
Accrued interest: 68 days. Yield to maturity: 4.96%. Coupon payment: 17 Jan & Jul
The investment is as follows (Assume the day convention is 365 days):
Principal amount payable
= Principal x Bond price = SGD 250,000 x 102.00/100 = SGD 255,000Accrued Interest payable
= Principal x coupon x number of days after last coupon payment = SGD 250,000 x 5.90/100 x 68/365 = SGD 2,747.95Total amount payable by the investor client
= Principal amount payable + Accrued interest payable = SGD 255,000 + SGD 2,747.95 = SGD 257,747.95Charges
- There are no commission for bond trading. A percentage spread is included in the price of the bond quoted to the client.
- There is a custody fee of 0.05% p.a of the market value and GST payable monthly for bonds under custody with Clearstream/Euroclear.
Other faq that might help you
- Do I need to open a new Phillip account to invest in bonds?
- Am I guaranteed to get the specific quantity of bonds that I placed an order for?
- What Is the relationship between Bond prices and Bond yields?
- What are the factors to consider before investing in bonds?
- How do I see the list of bonds eligible for bond financing?
- How can I place a bond order?
- Must I hold the bond until maturity?
- Is the list of bonds on the website all Phillip had to offer?
- How can I check the price for specific bonds?
- What are the bonds that I can invest in?
- How to make payment for the bond?
- How do I receive my coupon payments?
- How do I receive my proceeds after bond maturity?
- What are the commission charges for wholesale Bond investing?
- Do I need to be Accredited Investor to purchase bonds?
- What are the Bond charges?
- What is the minimum investment for Bonds?
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