What is the tenor of Sovereign Gold Bonds (SGBs) issued by the Government of India?

Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India. ·         The Bonds are issued in denominations of one gram of gold and in multiples thereof. ·         The Bonds bear interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment. ·         The tenor of SGBs is 8 years , with exit options available in the 5th, 6th, and 7th years. ·         the redemption price shall be based on simple average of closing price of gold of 999 purity of previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited.