Note 4. Investments:

(Dollars in Thousands)

As of September 30, 2004:
 Cost Amortized
(Premium)
Discount		 Investments
(Net)		 Other
Adjustments		 Market
Value
Disclosure
Intragovernmental Securities:
Marketable
  $        88,269  $   (1,015)  $        87,254  $            674  $        87,928
Non-Marketable:
Par Value
     20,103,444                -     20,103,444                    -     20,103,444
Market-Based
          351,488          (342)          351,146                    -          351,146
Subtotal
  $ 20,543,201  $   (1,357)  $ 20,541,844  $            674  $ 20,542,518
         
Accrued Interest
            75,706              75,706              75,706
         
Total Intragovernmental
  $ 20,618,907  $   (1,357)  $ 20,617,550  $            674  $ 20,618,224
As of September 30, 2003:
Intragovernmental Securities:
Marketable
  $      189,059  $      (743)  $      188,316  $                -  $      188,316
Non-Marketable:
          
Par Value
     10,517,891                -     10,517,891                    -     10,517,891
Market-Based
     14,163,246          (506)     14,162,740                    -     14,162,740
Subtotal
  $ 24,870,196  $   (1,249)  $ 24,868,947  $                -  $ 24,868,947
         
Accrued Interest
          105,829            105,829            105,829
         
Total Intragovernmental
  $ 24,976,025  $   (1,249)  $ 24,974,776  $                -  $ 24,974,776

Investments in Federal securities include non-marketable par value Treasury securities, market-based Treasury securities, marketable Treasury securities, and securities issued by other Federal entities.  Non-Federal securities include those issued by state and local governments, Government-sponsored enterprises, and other private corporations. 

Marketable Federal securities can be bought and sold on the open market.  Non-marketable par value Treasury securities are issued by the Bureau of Public Debt to Federal accounts and are purchased and redeemed at par exclusively through Treasury's Federal Investment Branch.  Non-marketable market-based Treasury securities are also issued by the Bureau of Public Debt to Federal accounts. They are not traded on any securities exchange but mirror the prices of particular Treasury securities trading in the Government securities market.  Amortization is done using the interest or straight-line method.