Highlights

• Opening Date: February 12, 2001

• Closing Date : March 2, 2001
• Minimum Amount is Rs.5,000
• Rs.5,000 becomes Rs.10,000 in 6 years 7 months

• Minimum Application : One Bond

• Maturity Date: October 30, 2007

• On maturity investors can redeem the Bond at its face value of Rs.10,000/-

• IDBI/Investor will have no call/put option to redeem/encash before the date of maturity

* Subject to deduction of tax at source as per the then prevailing tax laws.

Review

The Money Multiplier scheme offers the following benefits :

• It overcomes the reinvestment risk by placing the duration risk at equal to the term to maturity. Hence this investment is perfectly suited to investors who have a known liability maturing after a certain number of years and they want to avoid the interest rate risk

• Being a deep discount bond the investor can lock in at a high interest yield, more so since there are no exercisable call options for the company.