8% State Gold Loan 1922, bond 10,000 mkp / 10 zloty.

format_quoteA very interesting loan bond issued in a period of growing inflation of the Polish mark, when the future necessity of exchanging Polish marks for zlotys, which at the time of its issuance were not yet the currency of Poland, was already anticipated. Therefore, the bonds were accompanied by coupons denominated in both Polish marks and zlotys. The law under which the loan was issued stipulated that "interest accruing on the portion of the bonds denominated in Polish zlotys shall be payable in United States dollars, or in Swiss francs according to the ratio corresponding to the currency equivalence of each of these currencies to the Polish zloty, or in Polish marks according to the average exchange rate on the Warsaw Stock Exchange of the aforementioned currencies as of the last month before the date of payment of the coupons." It should also be added that the issue price of the bonds set at the beginning of their sale for the denomination of 10,000 mkp = PLN 10 was 24,000 mkp. Thus, in the calculation, the zloty portion fell at 2,400 mkp per one Polish zloty equal to the Swiss francformat_quote