Interest received in all the three options is subject to TDS according to the then prevailing tax laws. The yield to the investor would work out 11 per cent in case of all the three options. These will be issued at a discount and redeemed at premium, ie, face value. The issue price in both the options is Rs 5000. I has a tenure of 3 years and 10 months and the face value is Rs 7475.
Minimum application is for one bond.
Option II has a tenure of 6 years and 6 months. Face value is Rs 10,000 and minimum application is for one bond. The issue price in case of both the options is Rs 5000 each. I has a face value of Rs 30,000 and a tenure of 16 years and nine months while option II has a face value of Rs 40,000 and a tenure of 19 years and 5 months. The minimum application in case of both the options is one bond each.