Treasury Bills Calculator

Treasury Bills (T-Bills) are short-term government securities issued by the Government of Zambia through the Bank of Zambia. They are bought at a discount to face value and mature at full face value. The difference between what you pay and the face value is your interest income.

You can buy Treasury Bills in four tenors: 91, 182, 273, 364 days. Treasury Bill auctions are held every two weeks (fortnightly). Auction schedules and results are published on the Bank of Zambia website.

Your T-Bill interest (discount) income is subject to 20% withholding tax deducted at source by ZRA, plus a 1% handling fee at maturity. This calculator shows both gross and net returns after these deductions.

To buy T-Bills, 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, while competitive bids require a minimum of K500,000.

The price per K100 face value is calculated as: P = 100 / (1 + (n/365 x i)), where n is the tenor in days and i is the yield rate as a decimal. For example, a 182-day T-Bill at 10.5% yield gives a price of K95.02 per K100 face value - meaning you pay K95.02 to receive K100 at maturity.

Example: You invest K10,000 in a 91-day T-Bill at 10% yield. Price per 100 = 97.57, so your face value is K10,249.32. Gross interest = K249.32. After 20% WHT (K49.86) and 1% handling fee (K2.49), your net interest is K196.97. Total return: K10,196.97.