Under this method of floatation in primary market, a subscription is invited from general public to invest in the securities of a company through the issue of advertisement.
They can be issued to individuals, corporations and companies during periods of tight liquidity when the deposit growth of banks is slow but the demand for credit is high.
Suppose an investor purchases a 91 days Treasury bill with a face value of Rs. 2,00,000 for Rs. 1,92,000. By holding the bill until the maturity date, the investor receives Rs. 2,00,000. What is the amount of interest received by him?