Section 13 — Interest

(i) The Bonds will be issued in 'Cumulative' or 'Non-cumulative' form, at the option of investor and will bear interest at the rate of 7.75% per annum.
(ii) Interest on non-cumulative Bonds will be payable at half-yearly intervals from the date of issue in terms of paragraph 7 above and interest on cumulativeBonds will be compounded with half-yearly rests and will be payable on maturity along with the principal.
(iii) In the latter case, the maturity value of the Bonds shall be Rs. 1,703.00 (being principal and interest) for every Rs. 1,000/-(Nominal).
(iv) Interest to the holders opting for non-cumulative Bonds will be paid from date of issue in terms of paragraph 7 above up to 31st July/31st January as thecase may be, and thereafter half-yearly for period ending 31st July and 31st January on 1st August and 1st February.
(v) Interest on Bonds held to the credit of Bonds Ledger Account of an investor will be paid, electronically by credit to bank account of the holder as per theoption exercised by the investor/holder.