RBI sets rate of interest on floating rate bonds at 8.15%

Moneycontrol Bureau

The Reserve Bank of India (RBI) set the rate of interest on the 10-year floating rate bonds (FRB 2020). The applicable coupon for the half year December 21, 2012 to June 20, 2013 shall be 8.15% per annum, the central bank on Thursday said in a release.
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," RBI said.