Overview

Mexican Federal Government Development Bonds with fixed interest rates are referred to as Mexican Bonos. They are issued for terms longer than one year, pay coupons semiannually, and carry an interest rate determined upon issuance that remains fixed during the life of the instrument.

Reference Data

Unique attributes of Mexican Bonos are described below.

• Face Value: 100 pesos (one hundred pesos).

• Term: can be issued for any term, as long as this term is a multiple of 182 days. They are frequently issued for 3-, 5-, 10-, 20-, and 30-year terms.

• Interest Period: interest is paid semiannually, every 182 days or on the banking business day that substitutes this date in the event of a holiday.

• Interest Rate: fixed rate, determined by the federal government upon issuance. It is specified to investors in the auction announcement and in the notices that are published every time there is a new series.

• Interest Payments: interest is paid at the end of each interest period, based on the effective number of days that elapsed between payment dates, based on a 360-day year.

Security Master

To value Mexican Bonos accurately in Eagle the Quantity Scale (tag 19) must be changed from 1.00 to 100. This is the only change necessary for Accounting purposes.

Mexican Bonos SMF Example