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Q: What is a Tenor?
T-Bills are issued for a specific period usually 91-day (3 months), 182-day (6 months) and 364-day (one year) tenors in the primary market. The rates on T-Bills are quoted annually; as a result, an investor gets the full rate only if the tenor is up ...
Q. How to calculate your Commercial Paper Investment Returns
Stage 1 Under current terms (interest rate & 182-day tenor), investor puts N5m to work. However, this represents Face value "FV" (A) to be received at maturity. Interest works out to -N514k (B) which if taken upfront, means the actual/real amount ...
Q: What is a Treasury Bill auction?
In the primary market, the CBN conducts T-Bills auction usually every fortnight and requests investors to quote the rates they are willing to pay on the different tenors of T-bills usually 91- day, 182-day and 364-day instruments. At the auction, the ...
Q: What do I Benefit from Investing in Commercial Papers?
While CPs in Nigeria are typically issued by blue chip corporates with impressive track records of financial performance, this does not eliminate credit risk. The discount rate on the CP is usually reflective of the credit rating of the issuer, which ...
Q: What is Afrinvestor?
Afrinvestor gives instant and secure access to easily buy and sell stocks of companies listed on the Nigerian stock market. You can also invest in Treasury Bills and Commercial Papers with just a few taps. It is a user-friendly platform. If you want ...