Australian (ASX) Stock Market Forum

Understanding how to purchase a bond

Joined
Jul 9, 2013
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Hi guys,

Could you please teach me how to read something like this:

http://www.asx.com.au/asx/markets/priceLookup.do?by=asxCodes&asxCodes=GSBW13

Exchange-traded Australian Government Bonds
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!
 

cbc

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Nov 8, 2012
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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.
 

So_Cynical

The Contrarian Averager
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Aug 31, 2007
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Hi guys,

Could you please teach me how to read something like this:

http://www.asx.com.au/asx/markets/priceLookup.do?by=asxCodes&asxCodes=GSBW13

Exchange-traded Australian Government Bonds

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/products/AGB_Term_Sheet_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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