erat& em
ai
all year raoaehr
ft

\Vaft‘Wasftk--40,

4Nce.; , :0

S. it*Ses

7.70°/o

Zero Coupon Bond

Effective yield to maturity and current purchase price of $2,858
for bonds purchased through July 25, 2000. Matures at $6,000 10
years from issue date (first day of the month following the month
in which subscription is accepted by Fiscal Agent).

Jubilee (Series A) Issue Bond

7.15%

Fixed annual interest rate for bonds purchased through July 25,
2000. Matures 5 years from issue date. Minimum Subscription
$25,000.

Jubilee (Series B) Issue Bond

7.50

Fixed annual interest rate for bonds purchased through July 25,
2000. Matures 10 years from issue date. Minimum Subscription
$25,000.

LIBOR Floating Rate
Issue (LFRI) Bond

7■ 81

25°A)

Interest rate for bonds purchased through July 2000. Based on 75
basis points (fixed at time of purchase) plus the 6 month LIBOR

rate in effect on issue date, and recalculated thererafter on March
1, June 1, September 1 and December 1. Minimum subscription:
$5,000 ($2,500 or $2,000 for IRAs only). Matures: 10 years from
issue date.

Development Issue Current Income Bond

4.00% annual interest rate. $500 and increments of $500. Matures
15 years from issue date.

Development Issue Savings Bond

$500 and increments of $500. Matures 15 years from issue date at
180% of issue amount, resulting in an effectiveyield to maturity of
approximately 4.00%

Chai Bond

Purchase price: $136. Matures in 5 years at $180. Non-transfer-
able. Not eligible for early redemption. Purchaser may only
purchase one Bond for a given owner in any calendar year. May
only be purchased for/registered to an (only one) individual.

ADVANCE REINVESTMENT: All unmatured 4% bonds issued in 1985
and 1986 due in 2000 and 2001 are eligible for advance reinvestment.
The government of Israel has agreed to give you credit for the full matu-
rity value provided you add additional funds and reinvest in securities of
a higher denomination (7th Development, LFRI and Jubilee Bonds only).

MATURED BONDS: After maturity, bonds no longer earn interest.

ISSUES SUBJECT TO AVAILABILITY.

This is not an offering, which can be made only by prospectus. Read it carefully before investing. Member NASD, S1PC

Development Corporation for Israel/State of Israel Bonds

29201 Telegraph Road, Suite 324 • Southfield, Ml 48034-7654

248-352-6555 • 888-352-6556 • fax: 248-352-7887

7/7
2000

32

www.israelbonds.com