If i invest 3 million Naira in the FGN bond, how much will my quarterly returns be for a 3 year tenure?
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If you invest ₦3,000,000 in a Federal Government of Nigeria (FGN) Bond (3-year tenure), your quarterly returns depend on the interest rate (coupon rate) of that particular bond. Recently, 3-year FGN Savings Bonds have offered around 18.235% per annum, with quarterly coupon payments. Let’s calculateRead more
If you invest ₦3,000,000 in a Federal Government of Nigeria (FGN) Bond (3-year tenure), your quarterly returns depend on the interest rate (coupon rate) of that particular bond.
Recently, 3-year FGN Savings Bonds have offered around 18.235% per annum, with quarterly coupon payments.
Let’s calculate using this 18.235% example (to give you a realistic estimate):
Step-by-Step Calculation
1. Annual Interest
2. Quarterly Payment
Since it’s paid 4 times yearly:
Your Quarterly Return
₦136,762 every 3 months (approximately)
Full 3-Year Breakdown
Period
Payment
Every 3 months
₦136,762
Per year
₦547,050
3 years total interest
₦1,641,150
At maturity (principal returned)
₦3,000,000
Total After 3 Years
Total interest: ₦1,641,150
Your capital returned: ₦3,000,000
Total received: ₦4,641,150
Important Things to Know
FGN bonds are very safe (backed by government)
Interest is tax-free
Rate is fixed once you buy
Payment is predictable income
But One Important Clarification
There are two types:
FGN Savings Bond → Quarterly payment
Regular FGN Bond → Usually semi-annual (twice yearly)
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