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What Is the Difference Between Treasury Bills, Commercial Papers, and FGN Bonds?
Treasury Bills (T-Bills) You’re basically lending money to the government for a short time (about 3 months to 1 year). You earn a fixed return at maturity. Very safe and predictable, returns are usually lower Commercial Papers (CPs) Here, you’re lending money to companies, not the government, for thRead more
Treasury Bills (T-Bills) You’re basically lending money to the government for a short time (about 3 months to 1 year). You earn a fixed return at maturity.
Very safe and predictable, returns are usually lower
Commercial Papers (CPs) Here, you’re lending money to companies, not the government, for the short term.
Higher interest than T-Bills
Slightly higher risk since businesses can face challenges
Federal Government of Nigeria Bonds (FGN Bonds) This is lending money to the government for a longer period (years instead of months). You receive interest regularly and get your capital back at the end.
Steady income and relatively safe, your money stays invested longer.
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