Although bonds are usually issued in one thousand dollar blocks, of late years many corporations have split their bonds up into “baby bonds,” or bonds of one hundred dollar value, in order to gain the participation of the small investor and saver.
For example, among the high-grade (A) “baby bonds” for income only, the author would recommend to the prospective investor such issues as the following: Atlantic & Danville, 1st 4s, 1948; Bush Terminal Buildings, 5s, 1960; Western Union Telegraph Co., 6½s, 1936, and Armour and Co. of Del., 1st 5½s, 1943.
In the middle-grade (B) list for income and profit there are Cuba RR, 1st 5s, 1952; Western Pacific, 1st 5s, 1946; New York, Ontario and Western, 1st 4s, 1992, and Kansas City Southern Refunding and Improvement, 5s, 1950.
Among the more speculative (C) bonds for income and profit, also in the “baby bond” class, come the Erie General Lien, 4s, 1996; Chicago Great Western, 1st 4s, 1959, and Chicago, Milwaukee and St. Paul Convertible, 5s, 2014.
The writer urges that thought be given to this and similar bond lists so that the student investor may become familiar with the yield he can expect from most types. A study of the figures at which these bonds are selling, together with the figures of their yield, etc., will indicate what is meant by a “high-grade” bond and a “medium-grade” bond.