40

8.—17

Example : Thus, on any day on which the market prices are as follows : Fives of 1879, £105 ; 4-per-cent. inscribed stock, £101—then £103 19s. 3d. of 4-per-cent. inscribed stock is the equivalent of £100 of the Fives of 1889. A. H. Bailey. 26th January, 1886. Ealph P. Haedy. No. 3.—The Agent-Genebal to the Actuaries. Deab Sies, — 7, Westminster Chambers, 30th January, 1886. In addition to the computations you sent me in your letter of the 26th instant, be pleased to compute the proper value of a £100 debenture in the following loans : 5-per-cent. Consolidated Loan, 1867, £64,000, redeemable Ist January, 1893 ; 4J-per-cent. Defence Loan, 1870, £25,000, redeemable Ist July, 1910 ; 4J-per-cent. Immigration and Public Works Loan, 1870, £27,900, redeemable 15th April, 1913; 5-per-cent. General Purposes Loan, 1873, £49,500, redeemable 15th December, 1888 ; 5-per-cent. General Purposes Loan, 1873, £54,700, redeemable 28th November, 1914 ; 5-per-cent. Westland Loan, 1873, £50,000, redeemable 15th April, 1894 ; 6-per-cent. Auckland Loan, 1863, £31,600, redeemable Ist June, 1896; 6-per-cent. Lyttelton and Christchurch Bailway Loan, 1860, £77,700, redeemable thirty years from issue ; 6-per-cent. Canterbury Loan, 1862, £22,800, redeemable fifty years from issue ; 6-per-cent. Otago Loan, 1862, £116,700, redeemable Ist July, 1898. The value should be stated at the date of last dividend being paid. I am, &c, A. H. Bailey, Esq., and Balph P. Hardy, Esq. - F. D. Bell. No. 4.—The Actuabies to the Agent-Genebal. Deab Sir Feancis, — London, Ist February, 1886. The following are the values of a £100 debenture in the further loans, the particulars of which you have given us : " Consolidated Loan Act, 1867," £64,000, value £106 Is. Id. in January, 1886, dividend paid ; " Defence and other Purposes Loan Act, 1870," £25,000, value £107 15s. 3d. in January, 1886, dividend paid; "Immigration and Public Works Loan Act, 1870," £27,900, value £108 ss. lid. in October, 1885, dividend paid ; " General Purposes Loan Act, 1873," £49,500, value £102 16s. in December, 1885, dividend paid; "General Purposes Loan Act, 1873," £54,700, value £117 Is. sd. in November, 1885, dividend paid ; " Westland Loan Act, 1873," £50,000, value £107 2s. lid. in October, 1885, dividend paid; " Auckland Loan Act, 1863," £31,600, value £117 os. 3d. in December, 1885, dividend paid ; " Lyttelton and Christchurch Railway Loan Ordinance, 1860," £77,700, value £108 3s. 3d. in January, 1886, dividend paid ; "Canterbury Loan Ordinance, 1862," £22,800, value £132 9s. lid., in January, 1886, dividend paid ; " Otago Loan Ordinance, 1862," £116,700, value £119 10s. sd. in January, 1886, dividend paid. The calculations have been made in the manner pointed out in our letter of the 26th ultimo. We are, &c, A. H. Bailey. Sir Francis Dillon Bell, K.C.M.G. Ealph P. Hardy. No. s.—The Agent-Genebal to the Acttjabies. Dear Sibs, — 7, Westminster Chambers, Bth February, 1886. The Stock Agents having now fixed the terms on which the proposed conversions shall be made of the loans comprised in your recent computations, I transmit herewith a copy of the Bank of England's announcement of these terms, and have now to request that you will compute what will be in each case— (a) the augmentation of debt, (b) annual charge, (c) annual reduction in charge, (d) total reduction in annual charge, and (c) liquidation of increase in debt. I have further to request that you will prepare a table comparing the net yield per cent, now received by debenture-holders, at present market quotations, with the net yield they would receive if they converted on the terms now offered. I am, &c, A. H. Bailey, Esq., and Ealph P. Hardy, Esq. F. D. Bell. No. 6.—The Actuaries to the Agent-Genebal. Dear Sib Fbancis, — London, 9th February, 1886. In accordance with your letter of yesterday, we now transmit herewith two tables giving the computations you requested. We are, &c, A. H. Bailey. Sir F. D. Bell, K.C.M.G. Balph P. Haedy.

Table showing the Rate per Cent. yielded by the Debentures of the following Loans at the Market Prices stated.

Market Price of 4-per-cent. Inscribed Stock. Amount of.4-per-cent. Inscribed Stock, equivalent to each £100 of the above Stock, at the Market Prices undershown. Market Price of 4-per-cent. Inscribed Stock. 103J 104 104J 105 105J 106 106J 99 99J 100 100J 101 101J 102 £, s. d. 104 10 11 104 0 5 103 10 0 102 19 8 102 9 6 101 19 5 101 9 5 £ s. d. 105 1 0 104 10 5 104 0 0 103 9 8 102 19 5 102 9 3 101 19 3 £ s. a. 105 11 1 105 0 G 104 10 0 103 19 7 103 9 4 102 19 1 102 9 0 £ s. d. 106 1 3 105 10 7 105 0 0 104 9 7 103 19 3 103 8 11 102 18 10 £ s. a, 106 11 4 106 0 7 105 10 0 104 19 6 104 9 1 103 18 10 103 8 8 £ s. a. 107 1 5 106 10 8 106 0 0 105 9 5 104 19 0 104 8 8 103 18 5 £ s. a. 107 11 6 107 0 8 106 10 0 105 19 5 105 9 1 104 18 6 104 8 3 99 99J 100" 1OOJ 101 101J 102

Loan. Market Price. Bate of Interest yielded. Rate if converted. Vives of 1914 (a) 1en-forties (b) rives of 1889 (c) lixes of 1860 td) Sixes of 18C3 (e) £ 115 104J (cum div.) 104J (cum div.) 109 110 (cum div.) s s. a. 4 2 1 3 19 0 4 7 7 4 3 1 4 8 0 £ s. d. 3 18 3 (if converted into inso. stock] 3 13 10 (if new bonds be taken) 4 0 0 4 0 10 4 0 0 4 16 (a) Calculated from the 15th January, 188G. {b} (d) From the 1st January, 18! rrom the 1st March. >. (e) From the 15 , 1886. (c) From the 1st May, 1886. ith March, 1886. February, 1886. A. H. Bailey. Ealph P. Habdx.