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NISM Certifications · NISM-Series-VI: Depository Operations · Special Services - Debt Instruments and Government Securities

A client holds a 7.26% GOI 2033 bond with face value ₹10,00,000 in his demat account. Coupon is paid half-yearly. What is the coupon amount received each half-year, before tax?

The half-yearly coupon is ₹36,300. The annual coupon is 7.26% of ₹10,00,000, which equals ₹72,600, and since interest is paid twice a year, each payment is half of that amount, before any tax deduction.

  1. A₹36,300Correct
  2. B₹72,600
  3. C₹7,260
  4. D₹18,150

Explanation

Annual coupon = 7.26% × 10,00,000 = ₹72,600. Paid half-yearly, each payment is 72,600 / 2 = ₹36,300. Distractor ₹72,600 ignores the half-yearly frequency.

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