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Vikas Gupta (Querist)

10 August 2011 Abhishek purchases 7.40% GOI 2012 for face value of Rs.10lacs @101.80 i.e., Abhishek pays Rs.101.80 for every unit of government security having a face value of Rs.100.Last interest payment date was October 3, 2009.The settlement is due on March 3, 2010.What is the amount to be paid by Abhishek?

Aditya Maheshwari

Aditya Maheshwari (Expert)

10 August 2011 Correct me if i am worng in case the government security is being purchased at 101.80 then that is the amount to be paid by Abhishek.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

12 August 2011 Principal Amount Payable =
Rs. (1000000*101.80/100)= Rs. 10,18,000/-

Interest Payable =
Rs. (1000000*7.40%)*150/360=Rs 30833

Total Amount Payable =
Rs. (10,18,000+30,833)=Rs 10,48,833/-

Note: For Government dated securities, the day count is taken as 360 days for a year and 30 days for every completed month.

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