We must now briefly record the terms of the Loan.
There are two issues—one at 5 per cent. subject to Income Tax, and the other at 4 per cent. not subject to Income Tax. The issue price -of the 5 per cent. Loan is £95, and it is repayable at £100 on Juno 1st. 1947, though the State has the option to redeem at the end of twelve years. The yield, including the bonus on redemption, is £5 8s. 3d. per cent. The issue price of the 4 per cent. Loan is £100, and it is repayable at-par on October 15th, 1942. At the present rate of Income Tax the 5 per cent Loan yields £4 2s. 3d., so that among ordinary people it is likely to be more popular than the 4 per cent. Loan. Subscriptions must be in multiples of £60, except through the Post Office, where the minimum subscription is £5. A Sinking. Fund of 1 per cent. is attached to the Loan. There are conversion rights for those who invested in previous Loans, except in the case of holders of the 31- per cent. Loan. The Loan will be accepted -at the issue price in payment of Death Duties. Foreign and Colonial holders of the stock will not be liable to British taxation. Income Tax on registered• stock will not be deducted at the source.
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