Definition The FGN Savings Bond is a retail-friendly Federal Government of Nigeria bond issued regularly (via the DMO) in small minimums and short tenors, paying fixed...
Definition A bond ladder is a strategy that spreads investments across multiple maturities (rungs). As each bond matures, you reinvest into a new long-dated rung, balancing...
Definition A Eurobond is a bond issued in a foreign currency (commonly USD) by a government or company and sold to international investors. For Nigerian investors,...
Definition Convexity measures the curvature of a bond’s price–yield relationship. It adjusts the duration estimate so price changes are more accurate for larger yield moves. Key...
Definition Current yield is a bond’s annual coupon divided by its clean price. It shows the income return from coupons today, ignoring pull-to-par and reinvestment. Formula...
Definition A day-count convention is the rule that converts calendar days into an accrual fraction for interest calculations. It tells you how to count days (numerator)...
Definition Accrued interest is the interest earned since the last coupon date up to settlement. Buyers pay it to sellers on top of the quoted clean...
Definition Dirty price (or full price) is the cash price you pay/receive for a bond at settlement. It includes accrued interest since the last coupon date....
Definition Clean price is a bond’s quoted price excluding accrued interest. It’s the smooth, day-to-day price you see on screens; the cash you actually pay is...
Definition Yield to Worst (YTW) is the lowest annualised yield an investor can earn on a bond without the issuer defaulting, taking into account all possible...