The Reserve Bank of India (RBI) on April 3 announced a rate of interest of 7.88 percent on Government of India Floating Rate Bond 2028 (GOI FRB 2028).
The rate of interest will be applicable for the half year April 04, 2023 to October 03, 2023, the central bank said in a release.
The central bank further said it may be recalled that FRB 2028 carries a coupon, which has a base rate equivalent to the average of the Weighted Average Yield (WAY) of last three auctions (from the rate fixing day i.e., April 04, 2023) of 182 Day T-Bills, plus a fixed spread (0.64 percent).
Floating Rate Bonds are securities that do not have a fixed coupon rate. They have a variable coupon rate which is re-set at preannounced intervals.
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