Calculate the price, semi-annual coupon schedule, withholding tax, and total return of a Kenyan Treasury Bond, priced by discounting cash flows at the market yield.
Unlike a Treasury Bill, a Treasury Bond pays a fixed coupon every six months and can trade above or below its face value depending on how its coupon rate compares to current market yields. The Treasury Bond Calculator prices a bond by discounting every future coupon and the final face-value repayment back to today at the market yield you enter, which is the same method the secondary market uses.
How Is a Treasury Bond's Price Calculated?
Enter the face value, coupon rate, market yield, and tenor in years. The calculator pays a coupon every six months (coupon rate × face value ÷ 2), discounts each coupon plus the final face value repayment at half the market yield per period, and sums them to get the bond's price. When the market yield is higher than the coupon rate, the bond prices below face value — a discount; when the yield is lower, it prices above face value — a premium.
What Withholding Tax Applies?
Kenyan Treasury Bonds attract withholding tax on both the coupon and any discount income: 15% for bonds with a tenor under 10 years, 10% for 10 years and above. The calculator pre-fills the WHT rate based on the tenor you enter, but the field stays editable in case CBK's rate schedule has changed — confirm the current rate before relying on the figure.
How Do I Read the Coupon Schedule?
Enable the coupon schedule to see every semi-annual payment date from your value date through maturity, with the gross coupon, withholding tax, and net coupon for each. The totals row adds up gross interest, total withholding tax, and total net interest across the full life of the bond.
What Is "Total Return"?
Total return combines your net coupon income with any capital gain or loss at redemption — the difference between the face value you receive back and the price you paid. If you bought the bond at a discount, that capital gain adds to your net interest for a higher total return; if you bought at a premium, it subtracts. This is the single figure to compare when weighing two bonds with different coupon rates and prices against each other.
How is a Treasury Bond priced in Kenya?
By discounting every semi-annual coupon payment and the final face-value repayment back to today at the market yield. If the yield is higher than the coupon rate, the bond prices below face value (a discount); if lower, it prices above (a premium).
What withholding tax applies to Kenya Treasury Bonds?
15% on bonds with a tenor under 10 years, and 10% on bonds with a tenor of 10 years or more, applied to both coupon payments and any discount income.