The Reserve Bank Of India (RBI) announced that that the rate of interest on Government of India Floating Rate Bonds, 2031 (GOI FRB 2031) applicable for the half year June 7, 2020 to December 6, 2020 shall be 4.51% 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. June 7, 2020) of 182 Day T-Bills, plus a fixed spread (1%). The Weighted average yields will be computed by reckoning 365 days in a year. The coupon rate has been fixed accordingly.
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