Financial Note
THE NEW GOVERNMENT LOAN. _
WHILE there is every probability of speculative markets— and for that matter, Home Railway stocks, too—finishing up the year with a= cheerful appearance owing to optimism with regard-to-1928,- it -looks as-though attention dining-the closing days Of the year would be largely concentrated upon the new Government -Loan, of which particulars :appeared just before Christmas. The Loan is in the form of 5 per cent. Treasury Bonds, issued at the price of 101, i‘nd thj maximum life of the bond is seven years, the Government hoWdyer, having the right to redeem in February, 1988, at par. Holders of bonds maturing in September next are offered conversion into the new Loan on attractive terms, but cash subscriptions at the price named are also invited and I should expeeta good response to ,be made. Assuming the bonds to run for their full period,- the yield LS about 14 16s. 6d., allowing for-redemp- tion, or, if redeemed earlier, just over 41- Per cent. This, Of course, allows for the redemption at par, but all the while the bonds will have what is called a " running "' yield of- just under 5 per cent. The attractiveness of the issue kreatly increased by the fact that while -the bands themselves are short-dated, they clrry an option for the next, two years between certain dates in July to convert into the 4 per cent. Consolidated Loan. Holdings surrendered during the period July 16th to July 31st next year will --receive /117 in Consoli- dated Loan for each '1100 nominal or5 -per' ant. Treasury Bonds, while a year later they will receive 1114 10s. of Consoli- dated Loan for each 1100 nominal Of 5 'Per cent. Treasury
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