European Stars And Stripes (Newspaper) - July 13, 1986, Darmstadt, Hesse Sunday july 13, 1986 the stars and stripes Page 19 investor s guide by William a. Doyle. Every week usually on tues Day the newspaper carries a Short Kern about the Sale of is. Treasury Bills. I Don t understand the Dif Ference Between the discount rate and the actual for example the Jane 3 Story said the discount rate was 633 per cent on three month t Bills and6.41 on six month t Bills. It went on to say the discount Rales in Dentate the actual return to investors 6.52 for three month Bill Sand 6.72 percent for six month Why a. It s because Treasury Bills Are discount they Are is sued at a Price below face value and redeemed at face value when they mature. About the Best Way to explain this is with a less than absolutely accurate s say you buy a one year $10,000 t bin at a 10 percent Dis count when it is issued. You pay $9,000. When the t Bill matures you get $10,000 your $9,000 Purchase Price plus $1,000 inter est. The $1,000 interest on a $9,000one-year investment works out to approximately 11.1 percent. So even though the discount rate on the hypothetical t Bill in this example was 10 percent your actual return which is also called the in vestment yield or Coupon equiv Alent yield was 11.1 example is not precise be cause there Are no t Bills with maturities of exactly one year. T Bills usually Are issued with maturities of 13, 26 and 52 weeks 91,182 and 364 Days. The important thing is that the interest you earn on a t Bill always is higher than the t Bill s discount rate. Q. My sister insists she receives an interest Check within a week after she buys a is. Treasury Bill from a Federal Reserve Bank. I think she s wrong. What do Yon say a. Your sister is incorrect. When she buys a new t Bill through a Federal Reserve Bank she must put up the full fac amount of that t Bill. The Price at which she buys the t Bill a Dis counted Price below face value is set at a Treasury department auction. A discount Check for the difference Between the t Bill space value and the lower Price at which she bought it is then mailed to her. Along with Many other people your sister evidently thinks the discount Check is an interest Check. That s just not so. She gets her interest when the t Bill matures. Her interest is included in the face value of the t Bill she receives at . My husband and i expect to sell our Home Moo for approximately $250,000. We will move into rental quarters while we have an other Home built for about $200,000. What would be the safest Way to invest our Money while the new House is being constructed we will of course need periodic laments for the . . Treasury securities Are counted As the safest in the Bills and notes with maturities Matching your schedule payments to the builder would be natural Choice for most of you Money. King furn of Mcnut do to of come in Ami com. But ran prov Toi Wnnie Only Orough m column. You an Tel to him in on of Tim Sun and 8pm. Jwo 09811. Us. Fotch. A King future synd Kau. Inc. Business news Stock Market drops sharply new York up the Stock mar Ket fell sharply last week As investors gave up Hope for an economic rebound before the end of the year. The Market opened the week with record plunge but steadied a bit on wednesday thursday and monday the Dow Jones Industrial average plummeted 61.87 Points its big Gest one Day Point loss. For the week the Dow dropped 79.44points, ending at 1821.43. The number of stocks hitting new highs As the do climbed steadily diminished. On the trading poor Cente rior Energy was the most Active nose listed Issue losing i to 2sv4 on a volume of More than 11 million shares. Traders said the activity was related to attempts to Cap Ture the Stock s relatively High 10.2 per cent yield before it started trading sex dividend monday. Safeway stores followed rising 2% to57 /4 after Dart group launched a $s8-a share hostile tender offer for the grocer Chain wednesday. Pan american world airways was third rising to to 6vi. Traders said the gain was due to takeover fell 5 a to i43 a and at to lost i to 24 /4. General electric dropped 4 to76 /4. Union Carbide lost h to 23w and american express fell 2 to 60.celancse was the week s biggest loser Down 14v4 to 208v. Itt lost a to 56%.broadcast and newspaper stocks re treated. Capital cities communications fell Xvi to 258. Lbs dropped 6% to 139h. Knight Ridder gave up 6 to 50v Gannett lost 5v to 78%. Among pharmaceuticals Smithlin Beeckman dropped 6 a to 98 a. Eli Lilly fell 5w to 76%. Pfizer lost 5tt to 67%.philip Morris fell 2h to 73. Coca cola lost 2 to 41 /7. Pepsico fell 3 to 32.gap stores fell 7 a to 79. . Penney dropped 6 a to 78 v Sears fell 4 i to43h. Associated dry goods lost in to 65v,. K Mart fell 2v, to 53 the takeover Arena Sanders associates jumped 7 to 62v. After Lockheed agreed to buy it for $60 a share or $ 1.18 billion allowing Sanders to escape a hos tile takeover by Loral corp. Panhandle Eastern added % to 49%.its Board of directors wednesday unanimously rejected As inadequate a s50-a-Sharc buyout offer from Star partners. Overall 1,490 issues posted losses american production of Small cars shrinking Detroit up by 1988 . Auto makers will have virtually handed Over the business of building Small cars to foreign companies with the loss of about 70,000 . Jobs one Industry analyst predicts. The . Automakers Are the first casualties in the fierce fight for position in the Small car Market said Thomaso Grady president of integrated Auto motive resources of Wayne a. Most of the 70,000 expected Job casualties will occur in the supplier Side of the business As foreign car makers increasingly rely on non- firms to sup ply the parts they assemble in America of Grady said. He said Many . Auto makers have gone outside the unite states themselves to get better parts deals. In the past year the Industry has scrambled to internationalize itself with most far East companies rooting in .soil to avoid import quotas and More recently unfavourable Exchange rates. Five top japanese car makers Toyota Nissan Honda Mazda and Mitsubishi have or Are planning transplants either alone or in a joint venture with . Car makers. Toyota and Honda As Well a South korean car maker Hyundai Are plan Ning factories in Canada slated to begin production Between 1988 and 1990. In All transplant investments will Stock pulse amount to $4.3 billion and provide the capacity to build 1.76 million cars by 1990, most of them subcompact wards 1986automotive yearbook shows. General motors corp., although it will attempt to build Small cars domestically though its $3.5 billion Saturn corp. Be ginning in 1990, will Cut its Small car production by 50 percent by mid-1988,o Grady said. Pm is relying on japanese Carmakee Isuzu and Suzuki for two Chevrolet sub compacts. It produces its Nova Small car through a joint venture with Toyota in California. A third Model from South korean car maker Jaewoo will be sold through Pontiac in 1988.its Only domestically made subcompact the aging Chevrolet Chevetta willbe phased out after 1987, leaving pm with no made in America car of that size o Grady said. Ford motor co. And Chrysler depend entirely on importing or build ing a Small line of cars through Mazda an Mitsubishi respectively he said. American motors corp., the fourth traditional . Car maker has been producing French designed Renault since1983 in Kenosha wis. Recent reports indicate new models of those cars could be imported from France As Early As 1987, when Chrysler lakes Over the Plant to build its Large cars. Imm Prau c its nose con Post Moc a Stock Der vol cum cake t.sn.000 2514 ism 2.233.300 143 us co 1.790.900 19 Otlyn 1423.900 3ss Atit 1.375.900 84k itt 1451.600 55% Cut pkg 1315.000 49 Slimy 1.276,600 67x Eteoe 1.243.200 23% 1,166.700 37 by volume Ellin be you 10.1 10.71 13.0 3.1 1.06 15.0 6.2 2.53 14.0 u 1.53 16.0 4.9 1.64 31.0 1.6 4.77 10.0 1.0 3.76 15.0 3.0 3.69 .0 6.0 2.07 16.0 2.6 Nysco comport. Urgent pm pm Nam suck cum Chi Elm be you annd 96ft 4 $ 7.47 13.0 4.1 ism 143k 2% 1u.71 13.0 3.1 tune w � 2� 437 14.0 6.5 Wanoi 47 2% 2.76 17.0 my trl Mcd 46% 2k 0.46 7.0 4j Cir Lam 32h 2k 2.m 11.0 it Whirlpool 72k 2 so 144 tvs to bad 111 2h 5.74 19.0 3.1 Crown Cork 105. 2x .74 1u of Ulm 209x � 2x 15i3 14.0 m Anna co com Moil my cd mini suck of a cum Eim be i 571.100 lift Wick 396.700 5h 0.11 53.0 it Raeffer 366,100 6h 0.39 14.0 Anttn tar 329.900 16k Wingle 209,100 13k 1.2 hour Ovd 163.900 i3k it Ulm 147,000 10ft 0.9 lorknift.1 136.900 25% tic Fatamor 119.600 3h Kwiro 115.900 53k 3.5 9.0 0.3 Buck Horn shop cum Cha firm be tm74 in 144 2 12.49 12.0 03 Bot Mph 20%95 m proc to my cml Imo old pm my in 0.55 36.0 in 7.41 13.0 17 j 1 042 36.0 0.2 in 1.60 10.0 2.2 in 2.99 17.0 1.0 in 55.024 1h oj6 70.0 in 2.15 16.0 03 while sos showed gains among the 2,179issues traded. The Dow transportation average fell26.37 to 751.38. Boosted by prospects for lower interest rates and investors decisions to buy util Ity stocks the Dow Utility average rose3.29 to a record 204.05. Standard & poor s 500-Stock Index fell9.57 to 242.22. The new York Stock Exchange composite Index lost s.i6 to139,51. Big Board volume was 725.762.905shares, compared with 541,003,120 Dur ing the previous Holiday shortened weekend 534,013,800 during the same week a year volume for the week was 855,668,695 shares compared with637.568,240 a week earlier. The american Stock Exchange Index dropped 10.94 to 273.65. Declines out paced advances 611-177 among 924 is sues traded. Volume was 58,563,065 shares compared with 46,749,795 the previous week and 30,672,590 during the same week a year led the amex actives easing / to 5 /. Wang laboratories class b Fol Lowed losing i to 13%. Harley David son was third unchanged at 13ft. Pm Dachk Muki my Sihock in of mmi11 mate Marathon Oil cutting payroll Findlay Ohio up the Marathon Oil co. Confirmed that it has been forced by the falling Price of Oil to ask some employees to accept Early retirement and is laying off others in an Effort to Cut its an Nual payroll by $20 far 1,120 people have either accepted Early retirement or Bee Laid off since the company first began making cuts feb. I company spokesman William Ryder said. To Stock keys 2 top Mutual new York not the nation s two top performing Mutual funds in the second Quarter had one thing in common they Rode to stardom chiefly on the soaring Price of Home shopping network shopping a television re Tailer went Public on May 13 at$18 a share and closed on june 30 at $95.375 on the american Slock Exchange. Zenith fund capital growth Boston based fund that posted a total return of 38.28 percent for the latest three months has 20 percent of its portfolio in Home Milwaukee based Strong Opportunity fund which scored total return of 31.79 percent for the second Quarter has a Large pan of its portfolio in Home shopping. Union Pacific consolidating Omaha neb. Up the Union Pacific Railroad has announced a $7.9 million project consolidating its 40 regional Cus Tomer service centers into a Centra office in St. Louis. Chairman Drew Lewis said Union Pacific customers will have direct Access to the most sophisticated transportation control system in the
