How bonds pay you

Bonds pay a fixed interest rate, called the coupon, every six months, and return your money at the end.

• Interest on most bonds is taxed at 10%. Infrastructure bonds (IFBs) are usually tax free, which is why they are popular.
• Long bonds lock your money for many years. You can sell on the Nairobi Securities Exchange before maturity, but the price you get may be lower than you paid.
• Bonds suit money you won't need for a long time, or people who want a regular income.

Read each bond's prospectus before you bid: it shows the term, the coupon and the dates.