The rate of interest on the Floating Rate Bonds, 2020 (FRB, 2020) applicable for the half year December 21, 2013 to June 20, 2014 shall be 8.92 percent per annum.

It may be recalled that the rate of interest on the FRB, 2020 was set at average rate (rounded off up to two decimal places) of the implicit yields at the cut-off prices of the last three auctions of Government of India 182 day Treasury Bills held up to period preceding the coupon reset date, which is December 21. The implicit yields will be computed by reckoning 365 days in a year. The coupon rate has been fixed accordingly.

Ajit Prasad

Assistant General Manager

Floating Rate Bonds interest reset set by average implicit yields from recent treasury bill auctions, determining the coupon rate. The rate of interest on Floating Rate Bonds, 2020 for the half year December 21, 2013 to June 20, 2014 is 8.92% per annum. The coupon is set at the average of the implicit yields at the cut off prices of the last three auctions of 182 day Treasury Bills up to the period preceding the coupon reset date (December 21), with implicit yields computed on a 365 day basis and the average rounded to two decimal places.