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The first semi-annual interest payment for the 3 3/8% 10-year inflation-indexed note (CUSIP No. 9128272M3) that matures on January 15, 2007, is payable on July 15, 1997. Interest payments for various par amounts of the notes are shown in the following table, based on the annual interest rate of 3 3/8% and the July 15, 1997, index ratio of 1.01085:

                       Inflation-      Adjusted
         Par           Adjusted        Interest
         Amount        Principal       Payable
         $1,000        $1,010.85         $17.06
        $10,000       $10,108.50        $170.58
       $100,000      $101,085.00      $1,705.81
     $1,000,000    $1,010,850.00     $17,058.09
    $10,000,000   $10,108,500.00    $170,580.94
   $100,000,000  $101,085,000.00  $1,705,809.38

This information is available through the Treasury's Office of Public Affairs automated fax system by calling 202-622-2040 and requesting document number 1776. The information is also available on the Internet at Public Debt's home page.

Contact: Office of Financing
(202) 691-3550