Central bank announces rates on floating rate bonds

RBI said it had set a rate of interest of 9.50 per cent per annum on floating rate bonds maturing in 2011, for the year to August 7, 2009.

The Reserve Bank of India said on Thursday it had set a rate of interest of 9.50 per cent per annum on floating rate bonds (FRB) maturing in 2011, for the year to August 7, 2009.

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The variable base rate for payment of interest is the average rate of the implicit yields at cut-off prices of the last three 364-day treasury bill auctions, held up to the commencement of the respective annual coupon period, the central bank said.

It said it had set a rate of interest of 9.87 per cent per annum on floating rate bonds (FRB) maturing in 2015, for the year to August 9, 2009, also derived from the average rate of the implicit yields at cut-off prices of the last three 364-day t-bill auctions, the central bank said.