Government and Semi-government Bonds

By investing in government and semi-government bonds, you are lending money to the Australian or State government. In return, you receive a fixed rate of interest until a specific date when the bonds mature. Then you receive the face value of the bonds back.

Government and semi-government bonds offer you:

• a steady income through a fixed rate of interest paid every 6 months
• a fixed date of maturity
• a very low-risk investment if you hold the bonds until they mature
• a degree of capital protection with predictable returns
• added diversification if you have a portfolio of higher-risk investments.

Buying and selling government and semi-government bonds

You can buy government and semi-government bonds when they are first issued, or on the secondary market.

If you buy a bond on the secondary market, the price you pay depends on factors like:

• the time to maturity
• market interest rates
• the credit quality of the issuer
• how easy it is to buy and sell the bond (liquidity).

*The minimum investment will depend on your individual financial circumstances. You should discuss this with your financial adviser.

This is General Advice and does not take account of your objectives, financial situation or needs. Before acting on this general advice you should consider the appropriateness of the advice having regard to your situation.

For information relating to our financial services you should refer to the Macquarie Equities Ltd Financial Services Guide.

This material has been prepared based on information believed to be accurate at the time of publication. Subsequent changes in circumstances may occur at any time and may impact the accuracy of the information.