§ Mr. Hicksasked the Chancellor of the Exchequer what will be the value in real terms of an investment in Government stock of £1,000, £5,000, £10,000 and £25,000 after five years and 10 years, respectively, assuming an annual rate of inflation of 5 per cent., rates of tax proposed in his recent Budget statement and the continuance of current rates of interest.
§ Mr. Ian StewartIt is not possible to make such estimates without further arbitrary assumptions about other variable factors as well as the rate of inflation, general levels of taxation and interest rates. These would include the life of the stock, whether it was index-linked, the coupon, the rate at which the holder would reinvest the coupon payments, and the holder's own tax position.