Treasury Bond

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Treasury Bond/Government Bond

These are debt securities issued by the government in order to finance budget deficits. Issuance is made by the Undersecretariat of Treasury.

In fixed-income Treasury Bills / Government Bonds, the investor knows how much interest will be earned at the end of the maturity at the time of the investment and if she holds the product until the end of maturity, this return is guaranteed In Treasury Bills / Government Bonds, principal and interest payments are made by the government.

The Advantages of
Treasury Bond

Treasury bills are debt securities with a maturity of 1 year or less than 1 year, and Government Bonds with a maturity of more than 1 year.
Treasury Bills with a maturity of 1 year or less than 1 year are sold with a discount and Government Bonds with a maturity of more than 1 year with coupon payments.
Government Bonds with a maturity of more than 1 year with coupon payments.
Price is inversely proportional to interest rates.
When the interest rate decreases, the unit price of the bill / bond increases.
Interest payments are made for 3 months, 6 months or once a year in coupon bonds.
Coupon bonds are divided into three categories: fixed payment, floating rate or inflation indexed (TÜFEX).
They can be bought and sold before maturity.
In all Treasury Bills and Government Bonds, except for floating rate and TÜFEX government bonds, the yield is clear from the beginning, if expected until the end of maturity.

Things to know about
Treasury Bond

  • It will be sufficient to visit our nearest branch and sign the relevant transaction document.
  • Right after the necessary documents are signed and submitted to the Near East Bank Customer Respresentative, you will be informed about your application within a week.
  • Example 1: An investor wants to buy TB of 100,000 TL on 30/03/2012 with a term of 07/11/2012. The interest rate is 9,56%.

Unit Price = 100,000 / 1+ (9,56 * 222/36500) = 94,505

  • Example 2: An investor wants to buy Government bonds with a fixed coupon of 9.5% with a nominal amount of 100,000 on 30/03/2012, with a maturity of 12/01/2022.

Annual gross interest earnings of the customer;

100,000*4.75%=4,750 TL

Since coupon payments will be made twice a year, annual gross interest payment;

4,750*2= 9,500

Treasury Bills / Government Bonds transaction lower limit is 100,000 TL.

For the Application and Purchase Process, A Current Account will be opened for our valued customers. When the Treasury Bills / Government Bonds purchase request is made, a securities account linked to this account will also be opened. We wait for you, our valued customers, to the nearest Near East Bank branch to carry out your transaction.

Visit our nearest branch immediately
for your Treasury Bond transactions.

Open an account