Boom in Bessie 6s

One of the largest bond redemption premiums in Wall Street history was chalked up last week when giant Bethlehem Steel Corp. offered $1,810 each for its $1,000 par 6% bonds due in 1998. Before most speculators knew what the bidding was all about, the bonds had spurted 27½ points to 180—a record price.

For this lush offer Bethlehem Steel had two hardheaded reasons: 1) it saves money now because the 1942 Revenue Act permits corporations to retire debt with their 10% excess-profits tax refund; 2) it saves money later because each bond would draw $3,360 interest if outstanding until maturity. Best...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!