Mirae Asset Securities said on the 9th that it will newly launch a 3-year maturity in the April subscription for personal-investment Government Bonds.
Personal-investment Government Bonds are savings-type Government Bonds issued by the government for individual investors and are characterized by high stability because they are issued by the state. If a product with a maturity of 5 years or longer is held to maturity, interest is paid on a compound basis by adding the coupon rate and the additional rate. The benefit of separate taxation on interest income also applies for purchase amounts up to 200 million won.
The April subscription runs for five business days from today through the 15th. Subscription applications can be made from 9 a.m. to 4 p.m. through Mirae Asset Securities branches and the mobile trading system (MTS) "M-STOCK."
This is the first time Mirae Asset Securities has introduced 3-year personal-investment Government Bonds. In this issuance, the company newly added a 3-year coupon bond and a 3-year compound-interest bond. The compound-interest bond pays the compounded interest and principal in a lump sum at maturity, while the coupon bond pays regular interest once a year during the holding period and pays principal, regular interest, and additional interest at maturity. Previously, only 5-year, 10-year, and 20-year compound-interest bonds were sold.
The total issuance size is 210 billion won, up 30 billion won from the previous month. By issue, ▲ 3-year coupon bond 10 billion won ▲ 3-year compound-interest bond 10 billion won ▲ 5-year 50 billion won ▲ 10-year 110 billion won ▲ 20-year 30 billion won will be issued.
The additional rate for the April issuance is 0% for the 3-year, 0.1% for the 5-year, 1.05% for the 10-year, and 1.10% for the 20-year. Accordingly, if held to maturity, the pre-tax yields are ▲ 3-year coupon bond 10.41% (annual average 3.47%) ▲ 3-year compound-interest bond 10.77% (annual average 3.59%) ▲ 5-year 20.7% (annual average 4.14%) ▲ 10-year 58.97% (annual average 5.89%) ▲ 20-year 162.3% (annual average 8.11%).
A Mirae Asset Securities official said, "Personal-investment Government Bonds are steadily drawing more investor interest thanks to the stability of Government Bonds, the additional rate when held to maturity, yields from compound interest, and the benefit of separate taxation (up to a total purchase amount of 200 million won)," adding, "With the new launch of the 3-year coupon and compound-interest bonds expanding investment choices, we expect it will contribute to the public's stable asset building."