§ Sir William Clarkasked the Chancellor of the Exchequer what value will be added in a year to index-linked bonds already in issue, assuming the inflation rate to be 5 per cent., 6.8 per cent. and 10 per cent.
§ Mr. Bruce-GardyneThe value of index-linked National Savings certificates—retirement issue and second index-linked issue—held at end October 1982 was £5,200 million, made up of £4,250 million of principal and £950 million of index-linking-bonus. If these certificates are held until 1 November 1983 the value added will be of the order of
£385 million if the inflation rate 12 months hence is 5 per cent.£478 million if the inflation rate 12 months hence is 6.8 per cent.£645 million if the inflation rate 12 months hence is 10 per cent.These figures include the 2.4 per cent. supplement to be applied to certificates announced on 22 October, but exclude maturity bonuses accruing over the next 12 months.