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MVG-BOND |
A Mount Vema Government Bond (MVG-Bond) is a marketable security with fixed-interest debt issued by His Mount Vema Majesty’s Government with a 10 years maturity. Mount Vema Government bonds make interest payments semi-annually, and the income received is tax free.
This type of bond has the longest maturity and is issued quarterly. The first ten year bond was first issued back in 2007. They have a coupon payment every six months like MVG-Notes, and are commonly issued with maturity of ten years only, to meet demand mainly from pension funds and large, long-term institutional investors.
Methods of Purchase
MVG-Bonds can be purchased by various types of entities, such as trusts, estates, partnerships, including individuals, organizations, and corporate investors through a broker or financial institution. Institutions may establish a MVGMS Account to bid for Government securities directly at auction.
This type of bond has the longest maturity and is issued quarterly. The first ten year bond was first issued back in 2007. They have a coupon payment every six months like MVG-Notes, and are commonly issued with maturity of ten years only, to meet demand mainly from pension funds and large, long-term institutional investors.
Methods of Purchase
MVG-Bonds can be purchased by various types of entities, such as trusts, estates, partnerships, including individuals, organizations, and corporate investors through a broker or financial institution. Institutions may establish a MVGMS Account to bid for Government securities directly at auction.
Trading MVG-Bonds – Secondary Market
MVG-Bonds are quoted for purchase and sale in the secondary market of the Mount Vema Stock Exchange, priced through a competitive bidding process, at a discount from the par value. When investors redeem their MVG-Bonds at maturity, they are paid the par value. The difference between the purchase price and par value is interest. For example, an investor purchases a par value 1,000 golles MVG-Bond for 800 golles. When this MVG-Bond matures, the investor is paid 1,000 golles, thereby making 200 golles on the investment. Plus a 5% annual income.
Benefits to Investors
There are a number of advantages that MVG-Bonds offer to investors. They are considered low-risk investments and the income received is tax free. With a minimum investment requirement of just 1000 golles, they are accessible by a wide range of investors. The main downfall of MVG-Bonds is that they offer lower returns than many other investments, but these lower returns are due to their low risk. Investments that offer higher returns generally come with more risk.
MVG-Bonds are quoted for purchase and sale in the secondary market of the Mount Vema Stock Exchange, priced through a competitive bidding process, at a discount from the par value. When investors redeem their MVG-Bonds at maturity, they are paid the par value. The difference between the purchase price and par value is interest. For example, an investor purchases a par value 1,000 golles MVG-Bond for 800 golles. When this MVG-Bond matures, the investor is paid 1,000 golles, thereby making 200 golles on the investment. Plus a 5% annual income.
Benefits to Investors
There are a number of advantages that MVG-Bonds offer to investors. They are considered low-risk investments and the income received is tax free. With a minimum investment requirement of just 1000 golles, they are accessible by a wide range of investors. The main downfall of MVG-Bonds is that they offer lower returns than many other investments, but these lower returns are due to their low risk. Investments that offer higher returns generally come with more risk.
Regulatory Body
The Mount Vema Securities and Exchange Council (MVSEC) is the regulatory body charged with overseeing the activities of the Gollexi. An agency with the mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
The Mount Vema Securities and Exchange Council (MVSEC) is the regulatory body charged with overseeing the activities of the Gollexi. An agency with the mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
Remember that trading in the stock market can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
