BE'YKEK BONDS 105 11 A similar argument on this anJ other points in this note are contained in an editorial, The Business Standard) Calcutta) 14 January 1981. n Special Bearer Bonds (Immunities and Exemptions) Ordinance, op cit. u If an individual earns Rs 10,000 on 31 Mirch 1985 then the nomiminal value of that income is Rs 10,000. The concept of present value attempts to take into account the idea that future income is worth less than income now. Thus, present value would be the value of the sum of money that should be held today, which, at the going rate of interest would multiply to Rs 10,000 on 31 March 1985, and would therefore be less than the nominal value of the future income. The present value of the above income on 31 March 1981 would, at the prevailing rate of interest of 10 percent work out to Rs 6813.30. u See, for instance, reports in the Indian Express, Madras, 14 January 1981 and The Hindu, Madras, 14 and 16 January 1981.