BUSINESS 6.50% Fixed Annual Interest Rate For Bonds Purchased Through December 17, 1992 We Recommend This One: 800-334-5802 mr HE FIXED ANNUAL INTEREST 1 RATE FOR ISRAEL'S new Economic Development Issue (EDI) Bond may surprise you, but it shouldn't. For more than 40 years, investors have been attracted by Israel's appealing bond interest rates and the nation's perfect record of payment on principal and interest. Since Israel began its Bonds program in 1951, investors have purchased more than $12 billion in the nation's securities. The EDI's Flexible Terms Are Ideal for Many Investors Israel's EDI Bond — the first new security the nation has issued in more than two years — has an early redemption privilege that makes it an ideal investment for many retirement accounts, such as IRAs, Keoghs, pension or profit sharing plans, and union funds. The early redemption option also makes the EDI well- suited for many institutional and personal investment portfolios. The Early Redemption Privilege Works Like This: When you purchase an EDI for a retirement plan, you can redeem the Bond four years after issue date. EDI Bonds purchased for personal and institutional investment portfolios can be redeemed five years after issue date. The Bonds are redeemed on 120 days notice, which may be given prior to the expiration of the relevant holding period. The redemptions are made at WO percent of the principal amount plus any accrued interest. The minimum initial investment is $25,000. The EDI matures on December 31, 2002. Call the toll-free number above to obtain a prospectus and to learn more about Israel's investment opportunities. This is not an offering, which can be made only by a prospectus from: Development Corporation For Israel ISRAELBONDS THE DETRO I T JEWIS H NEWS 29201 Telegraph Road, Suite 324 Southfield, MI 48034 313-352-6555 B14 Market Fact Advertising is an integral part of the information package welcomed by Jewish News readers every week. *90% actively seek advertising information in The Jewish News every week. Source: Scarborough-Jewish News Study. THE JEWISH NEWS Israel Bonds Pay Hefty Returns KIMBERLY LIFTON STAFF WRITER S ince David Ben-Gurion launched the first Is- rael Bond campaign in Madison Square Gar- den in 1951, bonds have been viewed as a tool to help Israel by providing funds to develop and expand the economy. Typically, investors would purchase bonds, which paid a 4 percent annual yield, forget about the money, and rein- vest in new bonds when the certificates matured. Yet focus has changed over the past decade as Bonds have become competitive with other investment opportuni- ties. And returns on Israel Bonds can provide generous returns, with some funds pay- ing over 6 percent interest. U.S. funds — government and stock — have been hover- ing around the 3 percent mark. "The return on the invest- ment is at least as good as some alternative investment," said Sol Freedman, Israel Bonds' national director for institutional investments. "Today we are trying to con- vince people that they can in- vest in Israel Bonds with money they don't give away to charity. "A lot of people still look at Israel Bonds the old way, and it is hard to change that mindset," Mr. Freedman said. "This money helps Israel in absorption and immigration." Securities today offered by Israel Bonds include many personal investment portfo- lios, as well as retirement and pension funds such as IRAs and Keoghs. Proceeds from bonds have been used to develop indus- trial, agricultural and tech- nological projects. Since 1990, Israel has used proceeds from Bond sales for programs that help absorb new immigrants. Bonds available for pur- chase are: • Economic Development Issue Bond, with a $25,000 minimum purchase. This bond matures on Dec. 31, 2002, and it pays 6.5 percent interest every six months. Early redemption privileges are available after four years. • The Individual Variable Rate Issue Bond pays at least a 5 percent annual interest rate. Current interest rate is 5.5 percent. This fluid is avail- able for IRAs, and its mini- mum purchase is $2,000. Maturity date is 12 years from purchase, and early ref demption privileges are avail- able. • Zero Coupon Savings Bond pays 6.6 percent annu- al yield. These bonds are called infrastructure and ab- sorption bonds, which mature at S6,000 on Dec. 31, 2001. The purchase price and effec- tive yield to maturity are sub- ject to change each quarter. • Current Income Bond pays 4 percent annually and matures 15 years from date ofl purchase. The minimum pur- chase is $500. Proceeds from the pro- gram's first year resulted in sales of $50 million. To date, more than $12 billion in State of Israel securities have been/ purchased worldwide. In 1992 — a record-breaking year — more than $1 billion was in- vested in Israel Bonds. In Michigan (see chart), sales of Israel Bonds have in- creased from $2.5 million in 1951 to $19.7 million in 1992. Since its inception, Israel) never has defaulted on its bonds, which are backed by the full faith and credit of Is- rael. Throughout the pro- gram's history, Israel has made every interest payment in full and on time. '4 "Even though Israel has gone through periods of war and hyper-inflation, we still have never had a default on a 1 bond," Mr. Freedman said. 'We rely on our perfect pay- ment record." Many believe Israel' s de- 4 velopment over the past 44 years could not have taken place without the sale of I bonds, from which proceeds are channeled into the Israel Government' s Development Budget. Among the projects fi- nanced with Bond proceeds were the expansion project for the deepwater port at Haifa, 1951; improvements at the Dead Sea Works, where mil- , lions of tons of magnesium , chloride are extracted, mak- ing Israel one of the world' s largest exporters of large- scale chemical fertilizer, 1952; and construction of the Jerusalem-Tel Aviv super- highway, 1978. Many infrastructure pro- jects — including construction of highways, roads, steel 4 pipelines for oil supplies, satellite ground stations for communications — were built with bond monies as well. ❑ .