New Zealand Gazette – 1934 – No. 31

Page 1332

✨ Loan Conversion Example



1332
THE NEW ZEALAND GAZETTE.
[No. 31

Example of Working.

Conversion as from 15th December, 1933, of 6 per cent. securities for £100, maturing 14th January, 1947, into 4¼ per cent. securities.

Interest rate on existing securities (as reduced by Part I of the Act) is 4¾ per cent. per annum.

One year’s interest on £100 at existing rate (4¾ per cent.) is .. .. 4·8
One year’s interest on £100 at new rate (4¼ 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.

(T. 49/422/3.)

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

Price 1s. 6d.]

By Authority: G. H. Loney, Government Printer, Wellington.


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✨ LLM interpretation of page content

💰 Awatere County Loans Conversion Order, 1934 (No. 3) (continued from previous page)

💰 Finance & Revenue
27 April 1934
Loans, Conversion, Local Authority, Awatere County Council, Order in Council, Interest Reduction, Debentures, Securities
  • F. D. Thomson, Clerk of the Executive Council