Coupon Interest and Yield for exchange-traded Treasury Indexed Bonds (eTIBs)

What is the Coupon Interest Rate?

This is the fixed interest rate established when the bond is first issued. It determines the regular interest payments to the bondholder.

This rate remains constant throughout the bond's life. For example, a Treasury Indexed Bond with a 4% Coupon Interest Rate pays 1% of its Nominal Value (adjusted for CPI) quarterly until the bond matures.

These payments are called Coupon Interest Payments.

Note: The dates interest payments are made, and the interest rate, depend on the eTIB purchased. See Available eAGBs for details.

What is Real Yield to Maturity?

The real yield to maturity is the rate of return on a Treasury Indexed Bond above the rate of inflation if the bond is purchased at the current market price and held until its maturity date, with all Coupon Interest Payments reinvested at the same real yield. This can be used as a measure to compare bonds and understand the potential return on investment.

Further information

Understanding both the Coupon Interest Rate and Real Yield to Maturity is essential for investors to assess the potential returns and value of their investment in eTIBs.

For more detailed information, refer to the Investor Information Statement for exchange-traded Treasury Indexed Bonds.

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Last updated: May 2025

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