Government Bonds Calculator

Current GRZ Treasury Bond indicative yields for 2026: 2-year at 14.5%, 3-year at 14.9%, 5-year at 15%, 7-year at 16%, 10-year at 16.6%, 15-year at 17.59%. Longer tenors carry higher yields. Actual auction rates may vary.

Coupon income is subject to 20% withholding tax (WHT) deducted at source by ZRA. A 1% handling fee is also deducted from each coupon. Your net return is therefore lower than the stated coupon rate — this calculator shows both gross and net figures.

GRZ Treasury Bonds pay coupons semi-annually — every 182 days. Each coupon payment is half the annual coupon rate applied to your face value, less withholding tax and handling fees.

GRZ bonds range from 2 to 15 years. From April 2026, the 5-, 7-, 10-, and 15-year bonds are designated as benchmark bonds, while the 2- and 3-year are non-benchmark. Shorter tenors yield around 14.5%, longer tenors up to 17.59%. Bond auctions are held twice per quarter.

You need a Central Securities Depository (CSD) account at the Bank of Zambia and a local Kwacha bank account. You can bid directly through the BOZ Investor Portal (investorportal.boz.zm) or through any commercial bank. Non-competitive bids start at K1,000 face value, competitive bids at K500,000.

When you toggle "Adjust for Inflation", the calculator uses the Fisher equation to convert the nominal coupon rate into a real rate. The formula is: real rate = ((1 + nominal) / (1 + inflation)) - 1. The default 7% inflation rate reflects Zambia's recent average annual CPI from the Zambia Statistics Agency. You can change it to match your own expectations. This shows what your returns are worth in today's purchasing power.

You cannot cash in bonds at the Bank of Zambia before maturity. However, you can sell them to any willing buyer on the secondary market through your bank or a stockbroker. The price depends on current market interest rates - if rates have risen, your bond may trade below face value, and vice versa.

Example: K100,000 invested in a 2-year bond at 14.5%. Semi-annual coupon = K100,000 x 14.5% x (182/365) = K7,230.14. Withholding tax (20%) = K1,446.03. Handling fee (1%) = K72.30. Net per coupon = K5,711.81. Over 2 years (4 coupons), total net interest = K22,847.23.