What is a Treasury Bond?
Part 4/15: A Beginner’s Guide to Investing in Treasury Bonds & Bills
A Treasury Bond (T-Bond) is a long-term loan you give to the government in exchange for interest payments. It’s one of the safest investment options, offering predictable returns over several years.
How Do Treasury Bonds Work?
Unlike treasury bills, treasury bonds pay you interest every six months until they mature. This interest is called a coupon and is a fixed percentage of your investment.
For example, if you buy a UGX 1 million bond with a 15% coupon rate, you’ll receive UGX 75,000 every six months (15% of UGX 1M annually) until the bond matures. When it matures, you get back the full UGX 1 million you invested.
How Long Are Treasury Bonds?
In Uganda, treasury bonds come in different tenures:
2-year
3-year
5-year
10-year
15-year
20-year
Who Should Invest in Treasury Bonds?
Individuals looking for stable, long-term income
Investment clubs building wealth over time
Businesses & pension funds securing steady returns
If you’re thinking long-term and want a reliable way to grow your money, treasury bonds are a great choice. Want to know how they compare to treasury bills? Stay tuned for the next article!
This is part of the series A Beginner’s Guide to Investing in Treasury Bills and Bonds.
Want to invest in Africa’s treasury markets? Impala Market helps you track opportunities, compare bond yields, and connect with buyers & sellers in the Over the Counter (OTC) market.
Get real-time bond market insights, track upcoming auctions, and access the secondary (OTC) market to trade bonds effortlessly.
Weekly insights on bond market developments & investment opportunities
Tailored for individual investors, investment clubs & offshore investors
Subscribe for updates on Impala Market