RBI Announces Interest Rate of 8% on Floating Rate Savings Bond (FRSB) 2034

Current Context: The Reserve Bank of India (RBI) announced an 8% interest rate on the Floating Rate Savings Bond (FRSB) 2034 on 29th April 2024.

This special type of bond issued by the Government of India matures in 2034.
The interest rate is variable and will be reset every six months.
The current rate, for the next six months (from April 30, 2024 to October 29, 2024), on this FRB bond will be 8%.
The rate is calculated by taking an average of the interest rates from the previous three auctions of short-term government debt, plus a small additional fixed amount (0.98%).
These bonds can be a good option for investors who want an interest rate that reflects current market conditions.
FRBs have a maturity period of seven years.
The minimum investment amount for FRBs is Rs 1,000, while there is no maximum limit.
FRBs are backed by the government of India, making it one of the safest investments.
Interest on these bonds is paid semi-annually on January 1 and July 1 each year, with no provision for cumulative interest payments.

Question:

Q.1 What is the maturity period of the Floating Rate Bonds (FRBs)?
a. Five years
b. Seven years
c. Ten years
d. Twelve years