WAR LOAN DISPARITY
An explanation of tho low price ruling for original War Loan stock —the 2V_ per cent issue maturing on October 1, 1851— even though interest began to accrue ever two months ago, was Bjyen by Mr Andrew Hamilton, chairman of the Wellington Stock Exchange, at the annual meeting. The current market price at present Is £9! I (>. Mr. Hamilton said that when this loan was Imposed in 1940 on those who had already congfe From then on the short term rate of _',_ per cent was applied, but the period to maturity was not a short term but fixed as a long term one, namely, 10 years. On the lines of other finance in this country the two conditions did not run well together, and as something had to break under tho strain the price had to give way. Conmarket price of this loan and the 814 per cent 1947 loan of some £3 15/, although the accrued interests were within 2/ of each other.
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Bibliographic details
Auckland Star, Volume LXXIV, Issue 302, 21 December 1943, Page 5
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167WAR LOAN DISPARITY Auckland Star, Volume LXXIV, Issue 302, 21 December 1943, Page 5
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