Government bond 6.67GS 2050

If I buy 100 quantity of 6.67GS 2050 bond from kite @98 rs per bond

  1. I will get 6.67% interest or not.
  2. At maturity I will get 98 rs or 100 rs as the face value is 100.

If you hold until maturity, you will get the face value of the bond at 100 plus interest at 6.67% from the date you buy the bond.

If you buy it,

  1. You will get 6.67% Annual interest on face value of 100 paid out every 6 months (So around Rs. 3.33 payout every 6 months per bond). So effective yield would be higher (Since you are buying at less than face value)
  2. At maturity you will be paid back face value of Rs. 100

However, make sure you are ok with volatility in price, since interest rates are rising and this has long maturity of 30 years.
To give you some context, this bond was launched in December last year at price of 107. Yesterday you were looking at it trading 98. Today i checked and it is trading around 95.5.

It doesn’t really matter if you are planning to hold it for 30 years. You will keep on getting periodic interest at fixed rate. But if you plan to get out in between there can be substantial capital loss (or gain if interest cycle changes)

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This is annual interest, right? Not 6.67% interest every six months?

So: Rs.3.33 per unit paid out every six months?

Yes, you are correct. My bad I didn’t explicitly spelled out. Editing my post.

You will get the maturity amount and not the mount that you buy at but for that you will have to hold them till maturity. Then you can get 100 for them.

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