Interest is credited to the account at a rate fixed by reference to that obtainable from long-dated government stocks.
When one looks at the investments one discovers that a substantial part of them were either irredeemable or long-dated.
It ought to be the practice of all the shipping companies to retain sufficiently large sums to provide for long-dated obligations.
The present rates of interest payable on long-dated gilt-edged securities are in fact substantially below the current rate of inflation.
Why have any comparatively long-dated securities at all?
Initial orders for long-dated materials and component manufacture, have already been placed.
The engineers in my division will not touch these long-dated securities.
They may find it impossible to issue long-dated bonds.
