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Erudite AfricaCenter of Excellence
← Debt Capital Markets (DCM)

Price, yield, the yield curve and the Eurobond story

Module 03 / 5 · 70 min

Price T-bills and coupon bonds, measure interest rate risk with duration, build a Birr yield curve from auction data and read Ethiopia's 2014 Eurobond as a case in pricing and default.

In this module you will learn to

  • Price a T-bill from its yield and convert between discount and investment yields
  • Price a coupon bond, compute yield to maturity, current yield, accrued interest and modified duration
  • Build and interpret a Birr yield curve from T-bill auction results and extend it to a five-year benchmark
  • Explain what Ethiopia's 2014 Eurobond was, why the December 2023 coupon was missed and what that meant for prices

Built on

  • Erudite Africa training module: Ethiopian Context, topic 3.f Debt Capital Markets, Levels 1 and 2 (October 2026)
  • Capital Market Proclamation No. 1248/2021; ECMA Directive No. 996/2024 (fees); ECMA public offer directive (reported as No. 1030/2024); ESX Rulebook (December 2024)
  • National Bank of Ethiopia Proclamation No. 1359/2025; NBE Directives SBB/95/2025, SBB/87/2024, SBB/72/2019, SBB/98/2025, FXD/01/2024 as amended by FXD/04/2026, NBE/INT/13/2026; MPC release No. 7 (July 2026)
  • Ministry of Finance, Public Sector Debt Statistical Bulletin No. 56 (February 2026)
  • ICMA Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines; G20 Common Framework for Debt Treatments
  • Commercial Code of 2021 (reported as Proclamation No. 1243/2021)

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.