Central Bank of Kenya issues bonds every month.There are a lot of bonds in the market to invest in.The following are the four main factors to be considered while purchasing or investing on the bonds.
i.The type of bond to invest in.for instance infrastructure bonds are tax-free hence maybe highly considered and are more lucrative to investors.
ii.Maturity of the bond.these is the aspect on when you get your initial investment or money back if an investor holds on the bond until the maturity date.You can purchase a bond that matures after five years that’s shorter than buying a bond which matures after fifteen years.it depends on the take of an investor either short or long term bonds.
iii.The interest payment dates .these is consideration on which months the interests are paid .it’s mostly a consideration by investors who want to leap passive income from the bond ,either for reinvesting or spending.
iv.Type of bond sales.an investor is likely to have more control over the price of the bond on the original or primary sale of the bond than on a tap sale or a reopened bond issuance.
