Retails Treasury Bonds are direct and unconditional obligations of the national government which primarily caters to the retail market or the end-users. They are issued by the Bureau of Treasury (BTr). They are interest bearing and carry a term of more than one year and can be traded in the secondary market before maturity.
Retail Treasury Bonds are safe, liquid and offer attractive returns to investors.
|Term||:||3 and 5 years|
|Tax feature||:||Interest income subject to 20% final withholding tax|
|Type of income||:||Tax paid income|
|Rate||:||Fixed for the life of the RTBs|
|Coupon payment period||:||Payable quarterly in arrears|
|Interest computation||:||Simple interest/add-on|
|Manner of purchase||:||Auction or through secondary market|
Retail Treasury Bonds are issued and sold at a price equal to be face value and are redeemed at maturity for the full face value of the instrument plus interest/coupon of the last period (www.mart.com.ph).
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