Mar. 22.] THE NEW ZEALAND GAZETTE. 667

THIRD SCHEDULE.

COMPUTATION OF PREMIUMS.

1. The amount of the premium payable on the conversion of any existing securities
   shall be equal to the product obtained by multiplying the following factors, namely :-

(a) The difference between one year's interest on the amount of principal secured
by the existing securities at the rate payable thereon immediately before
the date of conversion and one year's interest on the same amount at the rate
payable on the new securities ; and

(b) The appropriate factor specified in the Table of Factors hereinafter set out,
according to the period between the date of conversion and the maturity
date of the existing securities.

2. For the purpose of computing any such period as is mentioned in paragraph (b)
   of the last preceding clause, any fraction of a half-year that is not less than three
   months shall be counted as a half-year, and any such fraction that is less than three
   months shall not be taken into account.

                            Table of Factors.

Period from Date of | Factor. | Period from Date of | Factor.
Conversion to Maturity | | Conversion to Maturity |
Date of Existing | | Date of Existing |
Securities. | | Securities. |
------------------------|-------------|-------------------------|----------
Years. | | Years. |
½ | 0·488998 | 19½ | 12·891438
1 | 0·967235 | 20 | 13·096761
1½ | 1·434948 | 20½ | 13·297566
2 | 1·892370 | 21 | 13·493952
2½ | 2·339726 | 21½ | 13·686017
3 | 2·777238 | 22 | 13·873855
3½ | 3·205123 | 22½ | 14·057560
4 | 3·623592 | 23 | 14·237222
4½ | 4·032853 | 23½ | 14·412931
5 | 4·433108 | 24 | 14·584774
5½ | 4·824556 | 24½ | 14·752835
6 | 5·207389 | 25 | 14·917198
6½ | 5·581799 | 25½ | 15·077944
7 | 5·947970 | 26 | 15·235153
7½ | 6·306062 | 26½ | 15·388903
8 | 6·656316 | 27 | 15·539270
8½ | 6·998842 | 27½ | 15·686327
9 | 7·333831 | 28 | 15·830149
9½ | 7·661448 | 28½ | 15·970806
10 | 7·981886 | 29 | 16·108367
10½ | 8·295214 | 29½ | 16·242902
11 | 8·601676 | 30 | 16·374476
11½ | 8·901395 | 30½ | 16·503155
12 | 9·194518 | 31 | 16·629003
12½ | 9·481191 | 31½ | 16·752081
13 | 9·761556 | 32 | 16·872451
13½ | 10·035752 | 32½ | 16·990172
14 | 10·303914 | 33 | 17·105303
14½ | 10·566175 | 33½ | 17·217900
15 | 10·822665 | 34 | 17·328020
15½ | 11·073511 | 34½ | 17·435716
16 | 11·318897 | 35 | 17·541042
16½ | 11·558765 | 35½ | 17·644051
17 | 11·793413 | 36 | 17·744793
17½ | 12·022898 | 36½ | 17·843319
18 | 12·247333 | 37 | 17·939676
18½ | 12·466829 | 37½ | 18·033913
19 | 12·681496 |

                           Example of Working.

Conversion as from 15th December, 1933, of 6-per-cent. securities for £100, maturing
14th January, 1947, into 4½-per-cent. securities.

Interest rate on existing securities (as reduced by Part I of the Act) is 4½ per
cent. per annum.

One year's interest on £100 at existing rate (4½ per cent.) is .. .. £ 4·8
One year's interest on £100 at new rate (4½ per cent.) is .. .. .. 4·25

                               Difference is  ..  ..  ..  ..  ..  £0·55

Period from date of conversion (15th December, 1933) to existing maturity date
(14th January, 1947) is 13 years 30 days, counted as 13 years.

Factor for 13 years is 9·761556.

£0·55 multiplied by 9·761556 is £5·3688558, or £5 7s. 4d., which is the premium
for £100 of the existing securities.

The premiums on other amounts of existing securities of the same class can be
computed in the same way, or, alternatively, by ascertaining 5·3688558 per cent. of the
amount of the principal in each case.

                                                              F. D. THOMSON,
                                                              Clerk of the Executive Council.

(T. 49/211/1.)