RBI sets rate of interest on floating Rate Bonds at 6.11percent

RBI sets rate of interest on floating Rate Bonds at 6.11percent

Mumbai, Dec 21 Reserve Bank of India said that the rate of interest on the Floating Rate Bonds,2020 (FRB, 2020) applicable for the half year December 21, 2016 to June 20, 2017 shall be 6.11 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.
Read more at http://www.uniindia.com/rbi-announces-rate-of-interest-on-floating-rate-bonds-2020/business-economy/news/725143.html#l0kdvelUJkhKdAQv.99

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