Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: notesfiles - hp 1.2 08/01/83; site hp-pcd.UUCP
Path: utzoo!utcs!lsuc!pesnta!hplabs!hp-pcd!john
From: john@hp-pcd.UUCP (john)
Newsgroups: net.invest
Subject: Re: long term investments
Message-ID: <33700004@hp-pcd.UUCP>
Date: Fri, 22-Mar-85 00:59:00 EST
Article-I.D.: hp-pcd.33700004
Posted: Fri Mar 22 00:59:00 1985
Date-Received: Tue, 19-Mar-85 19:58:59 EST
References: <1336@sunybcs.UUCP>
Organization: Hewlett-Packard - Corvallis, OR
Lines: 16
Nf-ID: #R:sunybcs:-133600:hp-pcd:33700004:000:629
Nf-From: hp-pcd!john    Mar 17 21:59:00 1985

<<<< Some things to watch out for with a Zero....

 Although you don't see a penny of interest until maturity, the IRS will
require you to pay taxes on the interest each year. This is why they are
popular for IRA's since you can at least wait until you have the interest
before giving it to the IRS.


 If you buy a normal bond for a project that goes bust in ten years you at
least get interest for ten years. With a zero you get...ZERO.(is that where
they got the name?). Hopefully there will be a way to recover the taxes you
paid on the interest that you never got and now never will get.  


John Eaton
!hplabs!hp-pcd!john