§ Mr. THORNEasked the Financial Secretary to the Treasury how the Bank 2685W Line, Limited, was able to borrow £1,165,200 at 2½ per cent. interest and the Tata Power Company, Limited, was able to borrow £765,600 at 2 per cent., guaranteed under the Trade Facilities Act; and whether he can state how it is that there is a difference in some loans of 1 and more per cent?
§ Mr. COOPEROf the two securities named the first was issued at 99½ and the second at 98 and the issues were not made simultaneously but at an interval of three months. Any difference in the effective yield represents merely the change in the market conditions for gilt-edged securities of that type between the two dates of issue. In reply to the second part of the question differences between the effective yields of securities of equal standing depend upon a number of circumstances, for example, the period of the stock, its amount, and the market conditions at the date of issue.