For those who:
Under specified conditions2, UniCredit Bank quotes daily purchase rates for the series of Bónusz Hungarian Government Bond, so they can be sold easily prior to their maturity.3
The receivable embodied by the Bónusz Hungarian Government Bond will not lapse towards the Issuer i.e. the Hungarian State. At the end of the term, the interest rate will be credited to the client’s account, together with the principal ,after the deduction of the interest rate tax. The interest rate income from the Bónusz Hungarian Government Bond is taxable; the tax rate for the interest income is 15%.
This information is not exhaustive and shall not be considered as an offer, recommendation or investment advice; its only purpose is to call your attention. For the detailed conditions see the business policies, lists of conditions of UniCredit Bank and the official documents of the Issuer (the Brochure and Public Offering applicable for the Bónusz Hungarian Government Bond of the given series). The distributor of the government bond is UniCredit Bank Hungary Zrt. (Activity Licence No.: I-1523/2003, a member of the Budapest Stock Exchange), which reserves the right to change the conditions. This information is a commercial communication as per Act CXX of 2001 on Capital Markets. Please take note that the tax law consequences of the investment may only be accurately judged after consideration of the client’s individual circumstances, and they are subject to change over time.
1 The interest rate base of each series is identical to the arithmetical average of the average yields achieved during four successful, 12-month discount treasury bill auctions preceding the date when the interest rate was defined, weighted by the quantities accepted at the given auction. A given series provides interest rate premiums, which differ by series, in excess of this interest rate base.
2 For further information on the conditions of government securities quotation please see section 5.2.2 of the General Terms of Business regarding Investment Services and the Bónusz Hungarian Government Bond Brochure.
3 The price of the government securities is influenced by the changes of the market yield. If the investor sells the securities prior to the maturity then, in the event of increasing yields, the price of the government securities may fall below the original purchase price. In the case of interest-bearing bonds, it may mean that upon the sales, the buyer pays the time-proportionate interest rate to the seller for the period that has passed since the last interest payment, but the net price, i.e. the price for the principal. may fall below the value as of the date of purchase so the investor may suffer a rate loss. If the investor keeps the securities until maturity, it will receive the annual yield recorded upon the purchase since the market price change that occurred during the term will not appear in the investment, only in the event of sales prior to maturity.