(MONEY Magazine) – GINNIE MAES -- Q. Five years ago, I bought a Prudential-Bache Ginnie Mae Series I and have been receiving returns on both principal and interest. When I recently called Pru-Bache to ask how much my investment was worth, I was given two figures -- market value and par value. What's the difference between the two? And if I keep it until its maturity of between seven and 12 years, will I get all my money back? Stella Migliore Lynnfield, Mass.

A. What you bought were actually units in the Government Securities Income Fund-Ginnie Mae Series I, a unit trust established in 1983 by Merrill Lynch and three other firms, including Pru-Bache. The trust invested in a fixed pool of GNMAs (popularly called Ginnie Maes) -- Government National Mortgage Association certificates, which are mortgage-backed securities that pay a monthly combination of principal and interest. The par value is the maturity value of the trust units; at inception it was $1. Par value was recently quoted at about 42 cents a unit, which means that the trust has paid out 58% in principal to date. The market value is the amount new investors are willing to pay for trust units. The secondary market value was recently 45 1/4 cents a unit, a slight premium to par. Most Ginnie Maes never last the full 12 years they're advertised for because prepayments reduce the outstanding principal. But you will eventually get all your money back -- plus interest -- through combined monthly installments. For a free explanatory pamphlet, write to GNMA, Suite 1600, 451 Seventh St. S.W., Washington, D.C. 20410.

COLLECTIBLES -- Q. I own a baseball with autographs from the 1924 New York Yankees, including Babe Ruth, Waite Hoyt, Miller Huggins and Wally Pipp. What is its value and where might I find a market for it? Russell Wolensky Poughkeepsie, N.Y.

A. Depending on its condition, your ball could be worth up to $5,000 from an ardent fan. Among the selling points: team balls are hot items, early Yankee baseballs are especially coveted, and the Babe's signature is always in season. For maximum value, though, the ball must be in mint condition -- meaning that the autographs are clear and legible and that the leather isn't darkened because of shellacking or exposure to sunlight. For a list of memorabilia devotees who might want to buy the ball, send for a free copy of Sports Collectors Digest (700 E. State St., Iola, Wis. 54990). In any case, you should get the ball appraised before selling it. One firm that does this gratis is Howard's Sports Collectibles, 128 E. Main St., Leipsic, Ohio 45856; 800-457-9974. Send the ball there via registered mail, insured for what you think it's worth. If you want Howard's or any other such outfit to put the ball up at auction, expect to pay a commission of 10% to 25% of the sale price.

FOREIGN PROFIT SHARING -- Q. I accrued about $75,000 in a company profit-sharing plan while I was working overseas and was exempt from U.S. income tax. I am now 50 years old and wonder at what level this would be taxed if I take it as a lump sum in 1988? Thomas Welch Metro Manila, The Philippines

A. Unfortunately, it will be taxed fairly heavily and, since you are collecting it before you reach 59 1/2, you will automatically be assessed a 10% early-withdrawal penalty in addition to the tax you will owe. Money from profit-sharing plans, regardless of where it was earned, does not qualify for the $70,000 foreign income tax exclusion, because the Internal Revenue Service does not consider it salary. The exact amount you must pay will depend, of course, on your filing status, deductions and so forth. You may be able to offset a portion of it with tax credits for which you may be eligible if you paid foreign income taxes in past years. Alternatively, you can defer taxes and avoid the early-withdrawal penalty by rolling over the lump sum into an Individual Retirement Account.

INVESTING -- Q. Last July, I purchased Ford Motor Credit Co. 8.25% bonds through E.F. Hutton but never received the bonds. The registration agent says the physical bonds won't be issued. Is this correct? Eugene R. Duggan River Forest, Ill.

A. Yes. In October 1986, Ford Motor Credit Co. -- a wholly owned subsidiary of Ford Motor Co. -- became the first corporate issuer of ''book-entry only'' long-term debt. (IBM Credit Corp. has since followed suit.) Instead of issuing the customary physical certificates, the brokerage firm that handles such a sale keeps records of who buys the bonds. Ford set it up that way because book-entry bonds are easier to administer and because only 5% of recent Ford bond buyers ever took delivery of their certificates. Obviously, your broker knows you are the owner, but it would be advisable to retain your trade confirmation and monthly financial statements as proof in case of a dispute.

TRUSTS -- Q. If I set up an irrevocable trust through a bank trust department, what protection would its beneficiaries have if the bank eventually failed? Would their money be guaranteed? John Rioux Pequabuck, Conn.

A. Such funds must by law be held separately from the bank's general assets and cannot be seized by creditors in the event of bank failure. Further, at banks covered by the Federal Deposit Insurance Corporation (or the Federal Savings and Loan Corporation in the case of S&Ls), each person's share in a trust is insured up to $100,000. If the value of any share exceeds $100,000, then that excess will go uninsured. You should, therefore, split sizable deposits into several trust accounts, each less than $100,000, that are placed in different banks.

TAXES -- Q. Some years ago I bought a restaurant organized as an S corporation ((one whose owners are taxed individually on corporate profits)) with financing from the seller. After five years of payments, the previous owner accepted a cash settlement much less than I still owed. Now I'm told I have to pay taxes on the debt forgiven. Is this true? Patricia McGinley Aspen, Colo.

A. Probably not. The IRS usually considers a forgiven debt as income, but there is an exception for property, and stock in an S corporation is considered property. The forgiving of debt reduces the cost basis of your stock, however, which could force you to file amended tax returns for past years if you took deductions based on losses the corporation incurred.