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PAGE 8 â€" WATERLOO CHRONICLE, WEDNESDAY. APRIL 6, 1983 March of Dimes appoints director The investment community doesn‘t take a back seat to any other industry when it comes to product development. In recent years several innovative financial products have been brought to market. I‘ll cover three of these this week. e The Canadian property development and management corporation, Cadillac Fairview, recently issued $112 million of participating mortgage bonds. In addition to an interest rate of 11.25%, each $1,000 unit carries 50 common share warrants and participation rights to 15% of the cash flow from nine shopping centres. The issue sold out quickly and is now trading at a premium. e The proceeds of an issue of common shares by Granite Development Corporation are being used to invest in luxury condominâ€" iums in downtown Toronto. Granite will rent units primarily to corporations on a mediumâ€" toâ€"longâ€"term basis for use as accommodations for visiting executives and customers. Granite is an Ontario Small Business Development Corporation (SBDC) and its shares qualify for RRSP investment. A firstâ€"time buyer of shares in an SBDC will receive a nonâ€"taxable Ontario government grant of 30% of the investment and, if it‘s new RRSP money that‘s invested and your marâ€" ginal tax rate is 50%, your net downside risk is only 20¢ on the dollar. e "Stripped" bonds are another. Upon issue of couponâ€"bearing bonds, coupons are reâ€" There is not yet an afterâ€"market for the shares. ©18 King S1. E. at Pandora, Kitchener, 579â€"1950 KP 2500 in dosh car cossette player with AM/FM Stereo. locking fast forward and rewind. plus auto replay /auto efect Includes a pair of Tenna Phase I!!. three way 6x9 Hiysh mount speakers 7 GALE ),. @fim'eg m â€"uPp) + CLEAnu® PIONCECOT +199 BOB COPLAND Your money YOUR EARS CAN TELL 10 .. ‘34" uD Câ€"90 CASSETTE TAPES moved, leaving a bond residue with zero yield. You may buy the residue only, all or some of the coupons, or a combination of these. Because you buy at a discount (based on prevailing interest rates), you receive interest as a portion of the face value of a coupon at its due date or of the residue at its maturity date. To illustrate, assuming a 13% interest rate, you could purchase a $100,000 residue maturâ€" ing in year 2004 for $6,800. For $50,000 you might purchase certain of the coupons to provide an income flow of $16,000 per year starting in 5 years‘ time and continuing for 15 years. The Ontario March of Dimes recently anâ€" nounced the appointâ€" ment of Andrew Czerâ€" winski to the position of Regional Director for Central West Ontario. One advantage of this investment is protecâ€" tion against falling interest rates. Between purchase date and coupon due date or residue maturity date, interest is, in effect, reinvested at yield rate. In addition, the problem of reinvesting small coupon amounts has been avoided. There are disadvantages. If interest rates soar again, yields to maturity will become unattractive. A secondary market has not yet developed. And, it is not known whether the gain will be treated for tax purposes as income or capital gain. Bob Copland is a chartered accountant and personal financial planning consultant with Executive Compensation Consultants, Kitchâ€" ener. Next week ....a special kind of annuity. KD DI0. Metal tope ready cassette deck, with Dolby noise reducton Extro large. iluminated VU meters for law dis tortion recording Includes 3 year ex warranty JVCGC The Central West Onâ€" tario region includes the counties of Bruce, Grey, Huron, Perth, Wellington and the Reâ€" gional Municipality of Waterloo. 165 COMPARE OUR PRICE! CUSTOM PIPE BENDING It‘s the best in town. i ___ 355 Weber St. N. Waterivo 884â€"7 100 886â€"1 040 W