Questions on bonds and retirement income in investor's guide
A reader asks whether to buy recent issue or discount bonds yielding 9 to 10 percent by 1985. The adviser says 9 percent current yield is unlikely on AAA or AA bonds due by 1985 unless buying new issues or short notes. discounts around 5.6 percent yield exist. For high current income, focus on top quality. avoid long-term capital gains from discount bonds. Other letters cover tax on bank interest for a widow, withdrawing interest for living expenses, and reallocating savings into higher-yield corporate bonds.