Understanding how to purchase a bond - Aussie Stock Forums

# Thread: Understanding how to purchase a bond

1. ## Understanding how to purchase a bond

Hi guys,

http://www.asx.com.au/asx/markets/pr...sxCodes=GSBW13

Code Coupon Maturity date Face value Bid Offer Last Yield High Low Number of Trades Value Volume Valuation Price Status Payment Frequency Next Ex-date Next Payment Date Chart
GSBW13 5.500% 15/12/2013 100.000 0.000 0.000 101.847 4.437% 101.847 101.847 1 10,184.700 100 101.847 2 04/12/2013 16/12/2013

Does this mean:
1) The current price is 101.847. So to get 1000 units of this, I would fork out \$101,847
2) I will get 4.437% coupon on 16th December, so on my \$101,847, I would get: \$101,847 * 4.437% = \$4,518.9513
3) What is "Next Ex-Date" ?

How can I tell how much interest I will get on my principal easily?

I read a few articles online but I am still confused!

Thanks!

2. ## Re: Understanding how to purchase a bond

ABC of the Asx website,

If u click where it says 'next ex date' it shall give u the definition. It should pop up in a separate window.

Although I don't know much about bonds if u click on 'coupon' it says that percent per annum, so I imagine it would be the coupon divided by 360 then multiplied by the number of remaining days. I assume that is. Might be wrong.

3. ## Re: Understanding how to purchase a bond

Originally Posted by ltcommander
Hi guys,

http://www.asx.com.au/asx/markets/pr...sxCodes=GSBW13

How can I tell how much interest I will get on my principal easily?

I read a few articles online but I am still confused!
This pretty much explains everything.

http://www.asx.com.au/documents/prod...eet_GSBW13.pdf

Note

• MATURITY DATE 15 December 2013
• COUPON 5.5% per annum paid semi-annually in arrears on the Face Value of the bonds.
• COUPON PAYMENT DATES 15 June and 15 December in each year commencing on 15 June 2010, to and including the Maturity Date.

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