The bond also provides investors with the flexibility of choosing holding period of the bond in order to suit his/her child's requirements. Depending on the holding period an investor can choose the yields ranging from 13.93 per cent to 14.13 per cent per annum. The face value of the bond is Rs 5,000 and an investor has to invest a minimum of Rs 10,000 and in multiples of Rs 5,000 thereafter.

Under the IDBI Education bond an investor will receive equal annual payment for five years after pre-determined hold period. ``The investor can choose 5 or 10 years as the hold period which means he will not receive any income till the completion of the chosen hold period. After the completion of the hold period theinvestor receives equal annual payment for five years,'' IDBI said.

The annual payment will be in the form of an annuity consisting of principal and interest. The annual payments vary depending on the hold period.

The Education Bond also provides the investor with an option to get a lumpsum amount after the completion of the hold period (five, seven or ten years) without waiting for five annual payments. If an investor exercises this option, he will get Rs 9,500, Rs 12,500 or Rs 18,500 after a wait period of five, seven, or 10 years respectively.

The subscription list of `IDBI Flexibonds 4' will close on October 17.