Fixed income: Treasury bills, government and corporate bonds

Module 02 / 5 · 65 min

Understand how Ethiopian Treasury bills are auctioned and priced, how bonds pay their holders, and how to judge the credit risk behind a coupon.

In this module you will learn to

Describe Treasury bills, their tenors and how the auction works
Calculate the discount yield and investment yield of a Treasury bill from its price
Explain the features of government and corporate bonds: coupon, maturity, yield and seniority
Assess the credit risk of a bond issuer and compare it with government risk

Built on

Erudite Africa training module: Ethiopian Context, topic 2.c Securities, Levels 1 and 2 (October 2026)
Capital Market Proclamation No. 1248/2021; Commercial Code Proclamation No. 1243/2021; National Bank of Ethiopia Proclamation No. 1359/2025
ECMA Directives No. 980/2024 and 996/2024; Directive No. 1030/2024 and No. 1009/2024 as reported; ESX Rulebook (December 2024)
NBE directives as listed in the lessons: SBB/89/2024, SBB/92/2024, SBB/95/2025, SBB/98/2025, SBB/78/2021 (reported), FXD/04/2026
NBE Monetary Policy Committee release No. 7 (July 2026); Ministry of Finance Public Sector Debt Statistical Bulletin No. 56

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.