Vietnam: Collection of the latest formula for calculating the nominal gross interest price of Government bonds applied from May 04, 2023?
- What is the formula for calculating the nominal interest gross price for Government bonds that do not pay periodic interest in Vietnam?
- How to calculate the price of Government bonds with fixed nominal interest rates, periodic interest payments and equal interest payment periods in Vietnam?
- How is the determination of the price of 01 government bond with a fixed nominal interest rate, periodic interest payment and the first interest payment period shorter or longer than the next interest payment period in Vietnam?
What is the formula for calculating the nominal interest gross price for Government bonds that do not pay periodic interest in Vietnam?
Pursuant to the provisions of Point a, Clause 1, Article 13 of Circular 107/2020/TT-BTC as amended and supplemented by Clause 6 Article 1 of Circular 12/2023/TT-BTC.
The formula for calculating the nominal interest gross price for Government bonds (government bonds) without periodic interest payment is as follows:
(1) For government bonds that do not pay periodic interest with a term remaining over one (01) year:
In which:
GG = Price of one (01) government bond (rounded down to copper units).
MG = Government bond denomination.
a = The number of days from the date of the 1st transaction payment until the next interest payment date assumed.
E = The actual number of days in the interest payment period assumes that the government bond code is repurchased with a term.
t = The number of assumed interest payments from the date of the 1st transaction payment to the maturity of the government bond.
Lt = Government bond discount rate (%/year), which is the interest rate until maturity (YTM) announced by the Stock Exchange in Vietnam on the day of the government bond term repurchase for the bond code used in trading on the website of the Stock Exchange in Vietnam (yield curve).
(2) For government bonds that do not pay periodic interest with a remaining term of one (01) year or less:
In which:
GG = Price of one (01) government bond (rounded down to copper units).
MG = Government bond denomination.
a = Number of days from the date of payment of the 1st transaction until the date the government bond matures.
E = The actual number of days in the interest payment period assumes that the government bond code is repurchased with a term.
Lt = Government bond discount rate (%/year), which is the interest rate until maturity (YTM) announced by the Stock Exchange in Vietnam on the day of the government bond term repurchase for the bond code used in trading on the website of the Stock Exchange in Vietnam (yield curve).
Vietnam: Collection of the latest formula for calculating the nominal gross interest price of Government bonds applied from May 04, 2023?
How to calculate the price of Government bonds with fixed nominal interest rates, periodic interest payments and equal interest payment periods in Vietnam?
For government bonds with fixed nominal interest rates, periodic interest payments and equal interest payment periods, the calculation of nominal interest gross price shall be made at Point b , Clause 1, Article 13 of Circular 107/2020/TT-BTC, as amended and supplemented by Clause 6 Article 1 of Circular 12/2023/TT-BTC.
As follows:
(1) For government bonds with a remaining term of more than one (01) year:
- In case the 1st transaction payment date is before or on the last registration date of the next interest payment period, the price of one (01) government bond is determined as follows:
- In case the 1st transaction payment date after the last registration date of the next interest payment period, the price of one (01) government bond is determined as follows:
In which:
GG = Price of one (01) government bond (rounded down to copper units).
MG = Government bond denomination.
Lc = Nominal government bond interest rate (%/year).
k = Number of periodic interest payments in 1 year.
d = The actual number of days between the 1st transaction settlement date and the next interest payment date.
E = The actual number of days in the period of interest payment of the repurchased bond code with a term.
t = The number of government bond interest payments between the 1st transaction payment date and the maturity date of the government bond.
Lt = Government bond discount rate (%/year), which is the interest rate until maturity (YTM) announced by the Stock Exchange in Vietnam on the day of the government bond term repurchase for the bond code used in trading on the website of the Stock Exchange in Vietnam (yield curve).
(2) For government bonds with a remaining term of one (01) year or less:
- For government bonds paid interest every twelve (12) months, the price of one (01) government bond is determined as follows:
- For government bonds paid interest every six (06) months:
+ In case the 1st transaction payment date is before or on the last registration date of the next interest payment period, the price of one (01) government bond is determined as follows:
+ In case the 1st transaction payment date after the last registration date of the next interest payment period, the price of one (01) government bond is determined as follows:
In which:
GG: Price one (01) government bond (rounded down to copper units).
MG: Government bond denomination.
Lc: Government bond nominal interest rate (%/year).
d: The actual number of days between the 1st transaction settlement date and the next interest payment date.
E: The actual number of days in the interest payment period of the repurchased government code with a term.
t: The number of interest payments of government bonds between the 1st transaction payment date and the maturity date of the government bond.
Lt: Government bond discount rate (%/year), which is the interest rate until maturity (YTM) announced by the Stock Exchange in Vietnam on the day of the government bond term repurchase organization for the government bond code used in trading on the website of the Stock Exchange in Vietnam (yield curve).
How is the determination of the price of 01 government bond with a fixed nominal interest rate, periodic interest payment and the first interest payment period shorter or longer than the next interest payment period in Vietnam?
The formula for calculating the nominal interest gross price of 01 government bond with fixed nominal interest rate, periodic interest payment and the first interest payment period is shorter or longer than the next interest payment period specified at Point c, Clause 1, Article 13 of Circular 107/2020/TT-BTC as amended, supplemented by Clause 6 Article 1 of Circular 12/2023/TT-BTC.
(1) For government bonds with a remaining term of more than one (01) year:
- In case the 1st transaction payment date is before or on the last registration date to receive government bond interest of the first interest payment period:
+ In case the actual number of days from the date of payment of the 1st transaction to the date of interest payment of the first interest payment period is shorter than one (01) regular interest payment period, the price of one (01) government bond is determined as follows:
+ In case the actual number of days from the date of payment of the 1st transaction to the date of interest payment of the first interest payment period is longer than or equal to one (01) regular interest payment period, the price of one (01) government bond is determined as follows:
In which:
GG = Price of one (01) government bond (rounded down to copper units).
GL1 = The amount of interest payment of one (01) government bond for the first interest payment period according to the terms of the bond when the first issuance.
MG = Government bond denomination.
Lt = Government bond discount rate (%/year), which is the interest rate until maturity (YTM) announced by the Stock Exchange in Vietnam on the day of the government bond term repurchase for the bond code used in trading on the website of the Stock Exchange in Vietnam (yield curve).
Lc = Nominal government bond interest rate (%/year).
k = Number of periodic interest payments in 1 year.
a1 = The actual number of days between the date of payment of the 1st transaction and the date of payment of the first bond interest according to the terms of the government bond when it is first issued.
a2 = The actual number of days from the date of payment of the 1st transaction to the date of payment of ordinary interest as assumed.
E = The actual number of days in the normal interest payment period according to the terms of the government bond when first issued.
t = The number of interest payments between the 1st transaction payment date and the maturity date of the government bond.
- In case the 1st transaction payment date is after the last registration date to receive the government bond interest of the first interest payment period, the price of one (01) government bond shall be determined according to the provisions of Section b.1, Point b of this Clause.
(2) For government bonds with a remaining term of one (01) year or less, the price of one (01) government bond is determined in the same formula for government bonds with a remaining term of one (01) year or less.
Circular 12/2023/TT-BTC will take effect from May 04, 2023.
LawNet
