Floating Rate Bonds

Floating Rate Bonds

News: The Government of India has announced the Sale (Re-issue) of Floating Rate Bonds, 2028’.

What are Bonds?
• Bonds are investment securities where an investor lends money to a company or a government for a set period of time, in exchange for regular interest payments.Generally, bonds come with a fixed coupon or interest rate. For example, you can buy a bond of Rs 10,000 with a coupon rate of 5%.
• Once the bond reaches maturity, the bond issuer returns the investor’s money.Fixed income is a term often used to describe bonds, since your investment earns fixed payments over the life of the bond.
• Companies sell bonds to finance ongoing operations, new projects or acquisitions.Governments sell bonds for funding purposes, and also to supplement revenue from taxes.
• A floating rate bond is a debt instrument that does not have a fixed coupon rate, but its interest rate fluctuates based on the benchmark the bond is drawn.
• Benchmarks are market instruments that influence the overall economy.For example, repo rate or reverse repo rate can be set as benchmarks for a floating rate bond.Floating rate bonds make up a significant part of the Indian bond market and are majorly issued by the government.
• For example, the RBI issued a floating rate bond in 2020 with interest payable every six months. After six months, the interest rate is re-fixed by the RBI.  

DICS Branches

Our Branches

DICS Ahmedabad

Ahmedabad

(Head Office)

Address : 506, 3rd EYE THREE (III), Opp. Induben Khakhrawala, Girish Cold Drink Cross Road, CG Road, Navrangpura, Ahmedabad, 380009.


Mobile : 8469231587 / 9586028957

Telephone : 079-40098991

E-mail: dics.upsc@gmail.com

Gandhinagar

Address: A-306, The Landmark, Urjanagar-1, Opp. Spicy Street, Kudasan – Por Road, Kudasan, Gandhinagar – 382421


Mobile : 9723832444 / 9723932444

E-mail: dics.gnagar@gmail.com

DICS Vadodara

Vadodara

Address: 2nd Floor, 9 Shivali Society, L&T Circle, opp. Ratri Bazar, Karelibaugh, Vadodara, 390018


Mobile : 9725692037 / 9725692054

E-mail: dics.vadodara@gmail.com

DICS Surat

Surat

Address: 403, Raj Victoria, Opp. Pal Walkway, Near Galaxy Circle, Pal, Surat-394510


Mobile : 8401031583 / 8401031587

E-mail: dics.surat@gmail.com

DICS New Delhi

New Delhi

Address: 53/1, Upper Ground floor, Near Popular juice, Old Rajinder nagar, New Delhi -60


Mobile : 9104830862 / 9104830865

E-mail: dics.newdelhi@gmail.com