Zero-coupon bonds do the job

The Ticker

January 14, 2000|By Julius Westheimer

WOULD YOU like a guaranteed investment that gives you a fixed return by a specific date? If so, consider zero-coupon bonds.

"Zero-coupon bonds are great for covering future financial needs and obligations," says Family Money. "They're ideal for paying college tuition, buying a new car or making a final balloon payment on a mortgage. Zeros are not like other bonds. You buy a `zero' at a discount from its face value and the interest is reinvested into your bond so you receive full face value at maturity."

WALL STREET WATCH: "This year, expect the market to swing sharply -- a heart-stopping decline one day, a record-setting gain the next. By year-end, we expect a net gain of about 10 percent, in line with earnings." (The Kiplinger Letter)

"We see another double-digit gain in 2000 for stocks. Earnings will remain strong while mergers and acquisitions will keep speculative juices flowing." (S&P Outlook)

"Over the past five years, fewer than 50 stocks accounted for more than 65 percent of overall market gains." (Personal Finance)

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