How Much You Pay and Receive: Two Worked Examples
Every shilling of a 364-day bill and a 15-year bond, using real Bank of Tanzania auction results.
Published 13 Oct 2026 · 3 min read
"What will I actually pay, and what will I actually get?" Here are two worked examples using real Bank of Tanzania auction results, so you can follow every shilling.
Example 1: a 364-day Treasury bill
At bills auction No. 1208 on 7 October 2026, the 364-day bill had a weighted average yield of 6.2839% and a weighted average price of 94.1029 per TZS 100.
Suppose you buy TZS 1,000,000 of face value at that price:
You pay 1,000,000 × 94.1029 ÷ 100 = TZS 941,029 on the settlement date, 8 October 2026.
You receive the face value, TZS 1,000,000, at maturity on 7 October 2027.
Interest earned: 1,000,000 − 941,029 = TZS 58,971.
Withholding tax at 10% (stated in the notice): TZS 5,897.10.
What you keep: about TZS 53,074, a return of about 5.64% on what you paid, after tax.
How the price links to the yield. For bills, the price per 100 is 100 ÷ (1 + yield × days ÷ 365). Here: 100 ÷ (1 + 0.062839 × 364 ÷ 365) = 94.1029, exactly the published price.
Example 2: a 15-year Treasury bond
At the auction of the 12.25% 15-year bond No. 696 on 30 September 2026, successful bids had a weighted average price of 110.5120 (a yield to maturity of 10.79%). The result also stated accrued interest of 1.4432 per TZS 100. Coupons are paid on 19 February and 19 August, and the bond matures on 19 February 2041. (See the result.)
Suppose you buy TZS 5,000,000 of face value at the average price:
What you pay on 1 October 2026 (settlement)
Price: 5,000,000 × 110.5120 ÷ 100 = TZS 5,525,600
Accrued interest: 5,000,000 × 1.4432 ÷ 100 = TZS 72,160
Total to pay: TZS 5,597,760
What you receive
Every coupon: 5,000,000 × 12.25% ÷ 2 = TZS 306,250, on 19 February and 19 August.
Number of coupons: 29, from 19 February 2027 to 19 February 2041, so TZS 8,881,250 in total. The interest on 15-year bonds is exempt from withholding tax, so you receive the full coupon.
At maturity: your TZS 5,000,000 face value comes back with the last coupon.
Total received: 8,881,250 + 5,000,000 = TZS 13,881,250 for TZS 5,597,760 paid.
Two things that surprise first-time investors
Accrued interest is not a fee. When a bond is reopened between coupon dates, you pay the seller's share of the current coupon, calculated as coupon rate × days since the last coupon ÷ 365 (the notices use Actual/365). Here: 12.25 × 43 days ÷ 365 = 1.4432. You get it back in full with your first coupon of TZS 306,250.
A price above 100 costs you the premium. You paid TZS 525,600 more than the face value, and only the face value comes back. That is why the yield (10.79%) is lower than the coupon (12.25%). Below 100, the opposite happens: you gain the discount and the yield is higher than the coupon. More: Price, coupon and yield.
Payment dates
When a coupon or repayment date falls on a weekend or public holiday, the payment is made on the next business day (stated in the notices). Payments go to the bank account linked to your CDS account.
Plan your own numbers
Use the bond calculator for any bond, amount and tax rate.
Compare the yield with inflation on Rates & economy to see your real return.
Add your bonds to the portfolio tracker in your account to see every upcoming coupon.
Next: Fees, taxes and other costs, or back to the investment journey.
Sources: Bank of Tanzania results for bills auction No. 1208 (7 October 2026) and bond auction No. 696 (30 September 2026); Bank of Tanzania auction notices. Figures are from those auctions only; your price depends on your own bid and the auction you join. This article is for education only and is not investment advice.