Lottery Game, and Was Immediately Advised to Courses Such As Caving, Wilderness Make up a Will

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Lottery Game, and Was Immediately Advised to Courses Such As Caving, Wilderness Make up a Will 20 - MANCUKSTKH H K K A U ), Mondity. July 16 1984 BUSINESS McCavanagh makes Reagan pressures states State delegates Zero-coupon bonds offer high yield with little investment candidacy official on drinking age bill still like Hart Sales of zero-coupon bonds have soared more than of maturity. A. The yield is assured; your return comes solely ... page 3 .. page 4 page 10 $50 billion so far this year and the upsurge shows no Q. Clarify this with an example. from the difference between the purchase price and signs of abating. Why? What are zeros? How are they A. Here is how money is compounded in a zero the value at maturity. Zeros are a liquid investment: created? Every day, questions of this sort trickle into Your investment, according to an example supplied to me there is an active aftermarket and they can be easily my office — indicating widespread lack of knowledge by Thomson McKinnon Securities: discounted before maturity, in case of need. side by side with the wide.spread purchasses. Money's On June 1, at a 13 percent interest rate, a $1,000 Investment is easy and there are no reinvestment Rarely has this sort of phenomenon occurred. It 20-year zero maturity on May 15, 2004, is sold at $85. problems. In addition to IRAs and other pension demands at least an attempt at a simple explanation Worth At end of first year, interest earned $11.05; net plans, they are particularly suitable for saving to Herewith: Sylvia Porter worth $96.05; meet such m ajor future expenditures as children’s At end of second year, interest earned $12.48; net educations. Muggy tonight; Q. What are zeros? worth $108.53; And the biggest advantage is that you pay a small Manchester, Conn. A. The.se are bonds from which the coupons have At end of third year, interest earned $14.10; net premium for a relatively large guaranteed yield at Showers Weijnesday Tuesday, July 17. 1984 been "stripped" — coupons being statements of the investors who want a comparatively large guaran­ worth $122.63. maturity. As an offset, zeros are a more volatile — See page 2 issuer's obligation to pay interest at specified dates, teed yield from a relatively small initial investment. And so on, compounded each year until at the end of trading vehicle than conventional bonds. Single copy: 25C usually semiannually. The "stripped" bonds then can You do not receive payments on a zero bond until the last year, interest earned $130; net investment $870; You can buy zeros easily: Just go to your broker: be sold to you, an investor, at deep discounts that redemption date — unless you sell the zero in the total return at maturity $1,000. try to buy in large quantities, if possible: buy zeros iJIanrliPHlrr IpralJi disappear as the maturity of your bond approaches secondary market before maturity. You can think of the growth and payout on a with the object of holding until maturity to avoid any and the price of your bond returns to its original issue Q. How do zero bonds show a profit? zero-coupon Treasury bond as similar to the growth penalties for in-and-out trading. level. The most popular types of zeros are Trea.sury A. Investment in a zero-coupon Treasury bond and payout on a U.S. Savings bond. ("Sylvia Porter’s New Money Book for the 80s,” bonds; but blue-chip corporations also have been provides about the same rate of return (interest) as a Q. What about the tax aspects? 1,328 pages of down-to-earth advice on personal offering debt securities in zero-type from since the conventional bond. But, while a conventional bond A. As an investor in zeros, you’re expected to pay money management, is now available through her early 1980s: some tax-exempt municipal issuers have pays semiannual interest of a specified amount, tax each year on income earned — even though you do column. Send $9.95 plus $1 for mailing and handling to followed this lead. There are even zero-coupon interest on a zero bond is compounded annually. The not receive any income. For long-term investment, “ Sylvia Porter’s New Money Book for the 80s, ’ ’ in care Cuom o certificates of indebtedne.ss. zero investor does not receive a regular interest therefore, zeros are best purchased for non-taxable of this newspaper, 4400 Johnson Drive, Fairway, Kan. Q. Are zeros good investments for me? payment, but compounded interest is added to IR A or other types of pension accounts. 66205. Make checks payable to Universal Press A. Probably -= but they are most suitable for (reinvested in) the original investment until the date Q. What are the advantages of zeros, briefly stated? Syndicate.) inspires Brass employees return Democrats despite grumbles over pact Bv Laurence McQuillan United Press International » ' Xu WATERBURY (UPI) - All of Schiffner, 39, a tool setter from increase, but company negotiators the 1,300 employees at Century Waterbury, said, "People are very insisted they could not afford it. SAN FRANCISCO - The Democrats, inspired by a Brass Products Inc. planned to upset about this... going back to Frank Santaguida, the com­ powerful plea to avoid becoming ” u babel of arguing return to their jobs today although work for nothing.” pany’s chief negotiator, noted voices," arc crafting a final party platform at today’s several complained they were Atillio D’Agostino, president of health and life insurance benefits convention that would bring the winners and losers "going back to work for nothing.” the union local, said he is not proud will be restored to the employees together. The one-week strike ended Fri­ of recommending the contract but and more than 1,900 retired brass Walter Mondale, Gary Hart and Jesse Jackson had day night after most of the not disappointed either.” workers. their first three-way summit Monday night for about members of United Auto Workers "A piece of pie is better than The company cut benefits to an hour — fueling the hopes of party lenders that the Local 1604 ratified a three-year nothing at all,” said Patricia retired employees, and the union final three Democratic presidential gladiators can contract providing no wage in­ Neuman, 42, of Waterbury, glad to filed a complaint with the National heal their wounds and peacefully go together on the crease in the first year. be returning to her job. Labor Relations Board. warpath against President Reagan. About 230 skilled trades workers The skilled trades workers re­ The strike started July 6, and Monday’s opening .session got off to a strong start rejected a separate contract 129-40 jected a pact that would have given Gov. William A. O’Neill and State with a rousing keynote address by New York Gov. and will make another attempt at a them an hourly wage increase in Labor Commissioner P. Joseph Mario Cuomo and Jimmy Carter’s return from virtual settlement in August. However all three years: 40 cents in the first Peraro intervened a week ago. political exile since his landslide loss four years ago. they too said they would be back at and second years and 30 cents in Worker’s at Century’s New Mil­ Cuomo, in tones that ranged from a whisper to a work today. the third. ford plant also went on strike. powerful crescendo that pulled the delegates to their Production workers voted 482- "The skills are so underpaid in Three years ago Local 1604 went feet and prompted them to interrupt him with 110 to accept the contract. They this place,” said Tom Cashman, on strike for four days before it applause 43 times, assured the party that traditional and the skilled workers will 31, of Waterbury. Cashman said he agreed to the three-year contract party values were still valid. receive a $100 bonuf Dec. 1 if they worked 465 hours overtime last that expired in June. During that "The Republicans believe the wagon train will not have worked for the company one year and earned a gross salary of strike, company officials threa­ make it to the frontier unless some of our old, some of to ten years, and $200 for up to 20 $ 22, 000. tened to liquidate the company oui young and some of our weak are left behind by the UP I photo years service. The. union leaders had said unless the union gave up some of its ide of the trail,” hesaid. "W e Democrats believe that Referring to the lack of a salary earlier they would not sign another benefits. The union agreed to a we can make it all the way with the whole family The central link hike in the first year, Gail contract without a first-year wage one-year wage freeze. intact.” Today’s agenda deals mostly with finalizing the Gerry Taylor, a technician in W. Va. area, the first area in the country platform, to be followed by Jackson’s evening speech Chesapeake & Potomac Telephone where MCI, Spring and other to the full convention. Co.'s central office, mans the computer long-distance service providers will State plans railroad work The three Democratic candidates emerged from their summit, held at a penthouse suite rented by that will trigger'"equal access" for compete on an equal footing with AT&T. House Speaker Thomas P. O’Neill, and sounded as telephone customers in the Charleston, though friendship could be worked out — although Jack.son said "there will remain some ... tension” for to avert train derailments the next two days. Mondale said the three were searching for Fate of auto Industry lies HARTFORD (UPI) - Officials DOT plans to improve the New program.
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