| Fixed Rate Treasury Notes |
| Product Definition |
Fixed Rate Treasury Notes (FXTNs) are direct and unconditional obligations of the national government. 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.
Fixed Rate Treasury Notes are considered one of the primest investment instruments in the market. They are safe, liquid and offer attractive returns to investors.
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Features:
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| Issuer | : | National government |
| Term | : | 2, 5, 7, 10, 15, 25 years |
| Tax feature | : | Interest income subject to 20% final withholding tax |
| Type of income | : | Tax paid income |
| Rate | : | Fixed for the life of the FXTN; based on lowest accepted yield to maturity on auction date |
| Coupon payment period | : | Payable semi-annually in arrears |
| Interest computation | : | Simple interest/add-on |
| Manner of purchase | : | Auction or through secondary market |
Fixed Rate Treasury notes 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.
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