Government bond 6.67GS 2050

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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