European Stars And Stripes (Newspaper) - August 16, 1987, Darmstadt, Hesse Page 20 the stars and stripes sunday. August 16,1987 investor s guide by Bill Doyle q. A pc hour Rumor hit in Abr not Distant future the fed enl forename no will remove the by fire Stith of the Tatems Baa most or la annl Eupil bomb. A Fol Ihn Herfy to Iran Lipil both Strtt Iund a. It amx fihe Bonds meet Sll the qualifications making the m term they pay cd capt from Feder Al income a the Constitution prohibits in Post fact legislation. Keep in mind that Al though the interest from most Munici pal Bonds is of acc from Federal in Doyle come Las. The intern from some municipal Bonds issued since 1984 is subject to thai lax. And inc status of More than 80 municipal Bond issues. Previously thought to be lax free is currently being investigated to determine if they were issued and sold in compliance with Federal Laws and other regulations so that their interest is legitimately Lai free. If Ilic Federal government pre vails the interest those particular Bonds have paid since they were is sued will be subject to Federal in come a bought $10,000 face glue tax free Raun Cipul Bond for $10,473. Will i be allowed to report i $473 it Pill lost Ben 1 redeem the Bond at 111 maturity or if i sell the Bond before ii matures a. No. That $473 Premium was part of the Price you paid to receive interest exempt from Federal income interest no doubt is Al a higher rate than you could have collected by paying $10.000 for a different lax free Bond of similar Quality and maturity. If you hold the Bond until it matures you will receive $10,000. The $473 will simply be gone. The internal Revenue code prohibits you from taking a capital loss for inc amount of that Premium. If you sell thai Bond before it matures you might or might not have a capital loss the difference be tween the proceeds from the Sale and your "basis1 on i Hulond. Your original basis was the Price you paid i 10.473. However you Ere required to amortize the $473 Premium Over the life of the Bond. There Are two methods for amortizing premiums on tax exempt Bonds. Which one you use depends on the Date the Bond was issued and the Dale you bought it. If you sell your Bond before maturity you should consult a Good accountant to be sure you know the Bond s Correct basis. Q. If i buy Tex Che rape Munici pal Bond Al a Price below ils Bee value and receive pm Talue when the Bond mature is else difference Between the two Price a profit Lable ii a capital rain a. Yes assuming the Bond s original Issue Price equal to or just below its face value. However if ii is an original Issue discount Bond meaning it was first sold at a Price Way below its face value thai Oid is amortized Over the Bond s maturity. In that Case the Bond s basis increases a Bil each be Rand equals face amount by the Lime the Bond matures. Him Sumn i Dor Inifi of twi tip 10 own it a Apo ow1i. Us to Vougn coir to you it i &iv1 Market roars Dow near 2700 by Donald Gallagher United press intercut too new York the Stock Market surprised even the most enthusiastic bulls last week with the Dow Jonett Industrial average Waring 93.43 Points in a dizzying performance that withstood end of we pressures to take profile. The Dow Industrial average Sel a new closing High 2691.49 thursday and made two forays through 2700 on thurs Day and Friday before slipping Back to close inc week Al 2685.43. It cracked the 2600 Mark for the first time on monday. The Dow first closed above 2500 on july 17. Friday s activity is an example of the kind of Market we be had said hug Johnson head of the investment policy com Millic at first Albany corp. It was Given a real Knock out punch in the form of the Trade data but this fighter got up from the Canvas and was ready to go Johnson was referring to the com Merce department report Friday show ing the . Merchandise Trade deficit widened to ii 5.7 billion in june from a revised $ 14.04 billion shortfall in May. American Stock Exchange s Market value inc Rose 2.s5 10 363.61, the National association of securities dealers Compo site Index pined 8.03 to 451,61.revised�it.utbillioninoniiiimm�j. T.-w. ,-.,- this is Clear evidence of the Market s on the big Board stat was the most underlying strength Johnson Sid. I Active nose lewd Issue gaining i on ask a Wyssie to Call today Fri the week to 34%. Hanson Trust ,uifu5-11/ll Foj Bia Fukuji a Fri Utin you would liar t Call Toda in Day very impressive when you have had such a sunup you must expect some profit taking. The Trade data was a Good in Csc to gel this Markel really nailed but it handled some pretty negative Lough Johnson said the Markel is the Benefi Ciary of a significant Pool of liquidity thai exists on a worldwide basis. Foreign investors ire buying stocks and Bonds without fear of losing their shirts when they convert Back to their own Curren Broad Markel indexes staged Sharp advances on inc week. Standard & poor s 500-Stock Index Rose 10.99 to 333.99 and the new York Stock Exchange composite Index climbed 5.52 to 186.69. The Stock pulse fir Unstad of my intr Etc by Frid. M4. In cup Stu Mori act Len by a to sir cow Hanin Ortch pm Siock cow 9.300,200 4s j,110.700 173% 2.04.900 3911 z.d14.wo 15 1.s864m 64 1.m4.700 a 1.964.100 31 i 1.959.100 7vi 1a5c.om j1v, cd com Eimi be pm is i lib Iso iss. 80 11 7.29 24 0 26 2 Iso 101 80 s2 340 2.1 149 119 4 7.19 130 40 Etoch a Eoo Sun i he nerd oks he in a Mower team zip i Bat la Xcvi Al a cum we Kalb 1.045,700 2s com Exira it of 2go. 3 111,100 10j-10 289900 1114 2 4.200 Ohl a 240 of 22s.ioo 0"919,909 2f i.t9 190 Honda hom9 Sug 81 Tiki uni Ai pub t so Liefl hotly he Tam co be be old 39 i 6 Tywan and a la Udo i a of 1c Nam in Fli Citman Cal a a re c1 c�9 of h elms be via of s40 06 507 160 107, 37h 3% a. So 3114 t is 24k � 2s i. 2 1�h t 1 24w � 1 a at Ruth m hoc Iai Jii 12 no Hui uni did. 391 Boos 1.3 Ico 18 the t a. Hanso advancing i a to is. Ism was third jumping 8vi to 173v. Technology issues played a leadership role in the Market s performance. Digital equipment jumped i2tt to 183 a and Uniss gained 2tt to 47 i. Among actively traded Blue chips Union Carbide dipped to 28w, Gener Al electric Rose 3 to 64, american express gained 2w to 39%, us was up a 10 37vi, Eastman Kodak Rose 4 4 to 100 and scars gained 3% to 58 f. In the Aulo sector. General motors jumped 6vk to 93 Chrysler added 5% to 45 i and Ford advanced 6% to 109k. Among the other actively traded stocks Avistar closed unchanged on inc week at Ivi k Mart Rose 1h to 46, Exxon Rose i it to 97v4 and Mobil fell a to 51overall advancing issues outnumbered losers 1,238.751 among the 2,194 new York Slock Exchange issues Chi Rig ing hands. The number of shares traded on the new York Stock Exchange during the week touted 1,114.32,630, com pared with 97i.829.6so a week before and 661,042,840 shard traded during the same week a year ago. The Dow transportation Index Rose 18.31 to 1101.16. The Dow Utility Index registered a gain op9.2s, ending at 213.79. Prices were mixed in Active trading on the american Stock Exchange. Declines outpaced advances 447-407 among the 1,016 issues traded. Volume was 72,971,500 share compared with 72,686,275 the week before and 49,797,895 during the same week year Day mines was the Moil Active amex Issue Down to 25. Fund prices from Page 19 i9 477x113111fl 52 1040 Utt Lusvel Ken at Una mama m my act act Cal engy Emma Gro Hill. M n h l 1zwh l q4&n l 9c7ni 10473019 it Mit 09 is 7t1t21 fiil2� w i071nl dict Tomt ii bin l ii Bohl 1441731 ii u i 01 02 71m 09 34 m 24 91 i1mnl ij90nl Stihl e.? .3 n � set Vair 5j. Att rid 5 j w ? 5p in of Cip i a i i a to set Kab Tom fund mop i North i nun Sun by in i Mvi cup Coni Gow i3091ki a Jenlih i3b b79n1 Binl. 17mt1 l u7d full Al to 92 31 3931 25 w 74 so Al 609 in i 14 673 77 7t n i 13 18 w l 9nl i 34 4 Piroa n to ii s3 i to 11 77 17 t7 ctr by i m. 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