Why do Government pay interest with Coupons

William Hammonds made this Freedom of Information request to Her Majesty's Treasury

This request has been closed to new correspondence from the public body. Contact us if you think it ought be re-opened.

Waiting for an internal review by Her Majesty's Treasury of their handling of this request.

Dear Her Majesty’s Treasury, Why does the government pay interest with coupons?
Are these coupons redeemable against goods? If so what goods are these coupons redeemed against?

Yours faithfully,

William Hammonds

Enquiries, CEU - HMT [Restricted], Her Majesty's Treasury

Dear Mr. Hammonds,

Thank you for your Freedom of Information request. I write to confirm receipt of your request and to let you know that it is receiving attention. If you have any enquiries regarding your request do not hesitate to contact us.

Regards

Mohammad

Kind Regards,
Correspondence and Information Rights Team | Corporate Centre Group | 2nd Floor Blue Zone | HM Treasury, 1 Horse Guards Rd, London, SW1A 2HQ | Please consider the environment before printing this email.
www.hm-treasury.gov.uk

show quoted sections

William Hammonds left an annotation ()

I'm hoping these coupons are not redeemed against bonds, which are exchanged for birth certificates.

Enquiries, CEU - HMT [Restricted], Her Majesty's Treasury

Dear Mr Hammonds

Thank you for your email dated 4 February where you asked:

“Why does the government pay interest with coupons?
Are these coupons redeemable against goods?
If so what goods are these coupons redeemed against?”

The “coupon” is the term given to interest payments on government bonds. These interest, or “coupon”, payments are paid in the form of cash.

The “coupon” is the total annual interest paid on a bond holding expressed as a percentage of a £100 nominal holding. For example, if you held £100 of 1% Treasury Gilt 2017 you would receive £1 interest annually (£0.50 every six months as interest is paid semi-annually) until maturity. At maturity the £100 principal is repaid.

The “coupons” are therefore simply the interest paid in cash to bond holders.

Yours sincerely,

Correspondence and Information Rights Team 

show quoted sections

William Hammonds

Dear Her Majesty’s Treasury,

Please pass this on to the person who conducts Freedom of Information reviews.

I am writing to request an internal review of Her Majesty’s Treasury's handling of my FOI request 'Why do Government pay interest with Coupons'.

Could you please tell me which definition you refer to when you use the word "cash".
For example, do you mean promissory notes created by the Bank of England, or promissory notes created by THE BANK OF ENGLAND, or something else?

If interest payments are paid with a promise to pay, how does the interest actually end up getting finally paid?
Also what provisions do the Bank of England/BANK OF ENGLAND provide for the reduction of promissory notes in circulation due to cash being handed back to the Bank of England/BANK OF ENGLAND for any purpose.

I would like the theory that interest payments are paid with promises of future commitments, ie Birth certificates/bonds to be ruled out if it is not the case.

Could I have a reply via a man or woman which would have a first and surname or a legal person, rather than a team. Thank you.

A full history of my FOI request and all correspondence is available on the Internet at this address:
http://www.whatdotheyknow.com/request/wh...

Yours faithfully,

William Hammonds

Enquiries, CEU - HMT [Restricted], Her Majesty's Treasury

Dear Mr. Hammonds,

Thank you for your Freedom of Information request. I write to confirm receipt of your request and to let you know that it is receiving attention. If you have any enquiries regarding your request do not hesitate to contact us.

Regards

Mohammad

Kind Regards,
Correspondence and Information Rights Team | Corporate Centre Group | 2nd Floor Blue Zone | HM Treasury, 1 Horse Guards Rd, London, SW1A 2HQ | Please consider the environment before printing this email.
www.hm-treasury.gov.uk

show quoted sections

Subratty, Mohammad - HMT [Restricted], Her Majesty's Treasury

Dear Mr. Hammonds,

With reference to my below email, I acknowledge this to be an internal review and not as a new request.

Kind Regards,
Correspondence and Information Rights Team | Corporate Centre Group | 2nd Floor Blue Zone | HM Treasury, 1 Horse Guards Rd, London, SW1A 2HQ | Please consider the environment before printing this email.
www.hm-treasury.gov.uk

show quoted sections