What is a Bond?
In finance, a bond is a type of security under which the issuer owes the holder a debt, and is obliged depending on the terms to provide cash flow to the creditor.
Best Bonds To Buy In Uganda
Which bond pays a higher interest rate?
Therefore, bonds with longer maturities generally have higher interest rate risk than similar bonds with shorter maturities.
To compensate investors for this interest rate risk, long-term bonds generally offer higher coupon rates than short-term bonds of the same credit quality.
How much do I need to invest in bonds in Uganda?
What is the minimum amount I need to buy a Treasury bill/bond? The minimum amount needed to buy Treasury Bills/Bonds is UGX. 100,000
(One hundred thousand shillings only) and are issued in multiples of UGX 100,000.
How do bonds work in Uganda?
Treasury bonds
These are government securities with the longest maturity ranging from periods of 2, 3, 5, 10, and 15 years. Interest on these securities is paid semi-annually and the principal at maturity.
Are bonds a good investment in Uganda?
Low risk: The risk of losing your money is lower than other investments such as stocks because it is guaranteed by the Bank of Uganda which has a good track record of paying its debts to bond investors.