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: Nominal amount of SGD 250 000 Corporate Bond was bought at the price of 102.00 % on 23 March 2025 (trading account to be pre-funded). It carries a coupon of 5.90% per annum and matures on 17 July 2027. The corporate bond was issued on 18 July 2024.

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
= Nominal amount x Bond price
= SGD 250,000.00 x 102.00%
= SGD 255,000.00

Accrued Interest payable
= Nominal amount x coupon x number of days after last coupon payment
= SGD 250,000.00 x 5.90% x 68/365
= SGD 2,747.95

Commission payable
= Nominal amount x default commission rate
= SGD 250,000 x 0.25%
= SGD 625.00

GST payable
= commission payable x GST rate
= SGD 625.00 x 9%
= SGD 56.25

Total amount payable by the investor client
= Principal amount payable + Accrued interest payable + Commission payable + GST payable
= SGD 255,000.00 + SGD 2,747.95 + SGD 625.00 + SGD 56.25
= SGD 258,429.20

Additional Information:

  • You can see charges stated during trade submission online and thereafter on contract note.
  • 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.

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