The rate of interest on the Floating Rate Bonds, 2031 (FRB 2031) applicable for the half year December 7, 2020 to June 6, 2021 shall be 4.29 percent per annum.

It may be recalled that FRB, 2031 will carry a coupon, which will have a base rate equivalent to the Weighted Average Yield (WAY) of last 3 auctions (from the rate fixing day i.e. December 7, 2020) of 182 Day T-Bills, plus a fixed spread (100 bps). The Weighted average yields will be computed by reckoning 365 days in a year.

Ajit Prasad
Director  

Press Release: 2020-2021/727