✨ Loan Conversion Schedule
2432
FOURTH SCHEDULE.
COMPUTATION OF PREMIUMS.
- 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.
- 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 Conversion to Maturity Date of Existing Securities. | Factor. | Period from Date of Conversion to Maturity Date of Existing Securities. | Factor. |
|---|---|---|---|
| Years. | Years. | ||
| $\frac{1}{2}$ | 0·488998 | 19$\frac{1}{2}$ | 12·891438 |
| 1 | 0·967235 | 20 | 13·096761 |
| 1$\frac{1}{2}$ | 1·434948 | 20$\frac{1}{2}$ | 13·297566 |
| 2 | 1·892370 | 21 | 13·493952 |
| 2$\frac{1}{2}$ | 2·339726 | 21$\frac{1}{2}$ | 13·686017 |
| 3 | 2·777238 | 22 | 13·873855 |
| 3$\frac{1}{2}$ | 3·205123 | 22$\frac{1}{2}$ | 14·057560 |
| 4 | 3·623592 | 23 | 14·237222 |
| 4$\frac{1}{2}$ | 4·032853 | 23$\frac{1}{2}$ | 14·412931 |
| 5 | 4·433108 | 24 | 14·584774 |
| 5$\frac{1}{2}$ | 4·824556 | 24$\frac{1}{2}$ | 14·752835 |
| 6 | 5·207389 | 25 | 14·917198 |
| 6$\frac{1}{2}$ | 5·581799 | 25$\frac{1}{2}$ | 15·077944 |
| 7 | 5·947970 | 26 | 15·235153 |
| 7$\frac{1}{2}$ | 6·306083 | 26$\frac{1}{2}$ | 15·388903 |
| 8 | 6·656316 | 27 | 15·539270 |
| 8$\frac{1}{2}$ | 6·998842 | 27$\frac{1}{2}$ | 15·686327 |
| 9 | 7·333831 | 28 | 15·830149 |
| 9$\frac{1}{2}$ | 7·661448 | 28$\frac{1}{2}$ | 15·970806 |
| 10 | 7·981856 | 29 | 16·108367 |
| 10$\frac{1}{2}$ | 8·295214 | 29$\frac{1}{2}$ | 16·242902 |
| 11 | 8·601676 | 30 | 16·374476 |
| 11$\frac{1}{2}$ | 8·901395 | 30$\frac{1}{2}$ | 16·503155 |
| 12 | 9·194518 | 31 | 16·629003 |
| 12$\frac{1}{2}$ | 9·481191 | 31$\frac{1}{2}$ | 16·752081 |
| 13 | 9·761556 | 32 | 16·872451 |
| 13$\frac{1}{2}$ | 10·035752 | 32$\frac{1}{2}$ | 16·990172 |
| 14 | 10·303914 | 33 | 17·105303 |
| 14$\frac{1}{2}$ | 10·566175 | 33$\frac{1}{2}$ | 17·217900 |
| 15 | 10·822665 | 34 | 17·328020 |
| 15$\frac{1}{2}$ | 11·073511 | 34$\frac{1}{2}$ | 17·435716 |
| 16 | 11·318837 | 35 | 17·541042 |
| 16$\frac{1}{2}$ | 11·558765 | 35$\frac{1}{2}$ | 17·644051 |
| 17 | 11·793413 | 36 | 17·744793 |
| 17$\frac{1}{2}$ | 12·022898 | 36$\frac{1}{2}$ | 17·843319 |
| 18 | 12·247333 | 37 | 17·939676 |
| 18$\frac{1}{2}$ | 12·466829 | 37$\frac{1}{2}$ | 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. 49/231/7.)
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VUW Te Waharoa —
NZ Gazette 1934, No 61
NZLII —
NZ Gazette 1934, No 61
✨ LLM interpretation of page content
💰
Greymouth Borough Loans Conversion Order, 1934 (No. 1)
(continued from previous page)
💰 Finance & Revenue30 July 1934
Loan Conversion, Debentures, Local Authorities, Greymouth Borough Council, Securities, Interest Rates, Order in Council, Premium Calculation, Table of Factors
- F. D. Thomson, Clerk of the Executive Council