Gold bond investors to get 209% returns on premature redemption

The RBI has fixed the premature redemption price for Sovereign Gold Bond (SGB) 2020-21 Series I at ₹14,159 per unit, effective from October 28. The redemption will lead yield an absolute simple return of nearly 209% for investors. SGBs are government securities dominated in grams of gold and bear an annual interest rate of 2.50% on the initial investment.