News Release
2½% Index-Linked Treasury Stock 2003
2½% Index-Linked Treasury Stock 2009
10 October 1996
In accordance with the terms of the prospectuses dated 22 October 1982 and 19 October 1982 respectively, the Bank of England announces that the rate of interest payable on the above stocks for the interest payment due on 20 May 1997 will be £2.4410 per £100 nominal of stock.
Notes to Editors
The relevant paragraphs of the prospectuses are as follows:-
6 For the purposes of this prospectus, the Index figure applicable to any month will be the Index figure issued seven months prior to the relevant month and relating to the month before that prior month; "month" means calendar month; and the Index ratio applicable to any month will be equal to the Index figure applicable to that month divided by the Index figure applicable to October 1982.
10 Each subsequent half-yearly interest payment will be at a rate, per £100 nominal of Stock, of £1.25 multiplied by the Index ratio applicable to the month in which the payment falls due.
11 The rate of interest for each interest payment other than the first, expressed as a percentage in pounds sterling to four places of decimals rounded to the nearest figure below, will be announced by the Bank of England not later than the business day immediately preceding the date of the previous interest payment.
12 If the Index is revised to a new base after the Stock is issued, it will be necessary, for the purposes of the preceding paragraphs, to calculate and use a notional Index figure in substitution for the Index figure applicable to the month in which repayment takes place and/or an interest payment falls due ("the month of payment"). This notional Index figure will be calculated by multiplying the actual Index figure applicable to the month of payment by the Index figure on the old base for the month on which the revised Index is based and dividing the product by the new base figure for the same month. This procedure will be used for each occasion on which a revision is made during the life of the Stock.
