tax-exempt bond Municipal or other bond whose interest is not subject to one or more taxes.
tax spread A (usually negative) yield or interest rate spread due to some tax advantage.
Tax-exempt bond
A bond usually issued by municipal, county, or state governments whose interest payments are not subject to federal and, in some cases, state and local income tax.
Tax-exempt income ...
Tax-Exempt Bond: A bond whose interest payments are not subject to tax from federal, state, or local authorities.
Tax-Exempt: Not subject to tax by federal, state, and/or local authorities.
Tax-Exempt Bond
Bonds exempt from federal income, state income, or state tax and local personal property taxes.
tax-exempt bond
security whose interest is not subject to federal or local tax in the state of the issuer. Though often called a municipal bond, it may also be issued by a county, state, or state agency.
TAX-EXEMPT BOND FUND A fund that invests in municipal bonds. While investors do not pay federal income taxes on the income from these funds, they may be subject to state or local taxes.
A tax-exempt bond issued by a municipality or a state financial intermediary that is backed by the moral, but not legal, obligation of a state government to appropriate funds in case of default.
"More behind it" ...
A tax-exempt bond which is issued by federally qualified organizations and/or municipalities for the development of brownfield sites. Brownfield sites are areas of land that are under utilized, have abandoned buildings, or are under developed.
If tax-exempt bonds are used (directly or indirectly) for the building or its operation, ...
White's Tax-Exempt Bond Rating Service's classification of municipal securities, which is based on market factors rather than credit considerations and which attempts to determine appropriate yields. See also Municipal Bond.
English▼ ...
Example--A tax-exempt bond is yielding 6%; your marginal tax rate is 31%. One minus .31 is .69. Divide that into .06; the result is .08695, or 8.7%. Thus, a 6% tax-exempt yield is equivalent to an 8.7% fully taxable yield.
AMT BOND - A tax-exempt bond, interest on which is subject to the alternative minimum tax. Compare: NON-AMT BOND; TAXABLE BOND. See: ALTERNATIVE MINIMUM TAX; PRIVATE ACTIVITY BOND; TAX-EXEMPT BOND.
Green Bond - A tax-exempt bond which is issued by federally qualified organizations and/or municipalities for the development of brownfield sites.
tax-exempt bond A bond that is issued by the government; its interest payments are not subject... tax-free bond fund This is a tax-free mutual fund that specializes in municipal bonds.
Moral obligation bond A tax-exempt bond issued by a municipality or a state financial intermediary that is backed by the moral, but not legal, obligation of a state government to appropriate funds in case of default .
This index serves as the benchmark for the TIAA-CREF Tax-Exempt Bond Fund. leverage The process of using borrowed money to invest. liability Claims against or amounts owed by an individual or business.
The interest rate at which a taxable security and a tax-exempt bond have the same rate of return.
While taxable bonds normally pay higher interest rates than tax-exempt bonds, they sometimes provide a lower overall yield.
Industrial Revenue Bond (Irb) - A tax-exempt bond issued by a state or local government agency to finance industrial or commercial projects that serve a public good.
Also called a Variable Rate Demand Note (VRDO), is a long term, taxable, or tax-exempt bond issued on a variable rate basis that can be tendered for purchase at par whenever rates reset upon seven-day notice by the investor.
For example, in 1946, 20-year AAA tax-exempt bonds traded at slightly below a 1% yield.
Yield equivalence
The interest rate at which a tax-exempt bond and a taxable security of similar quality give the investor the same rate of return.
Yield ratio
The quotient of two bond yields.
A mutual fund that invests in a broad range of short, intermediate or long-term tax-exempt bonds issued by states, cities and other local governments. The interest obtained from these bonds is passed through to shareholders free of tax.
The credit amounts to 70 percent of the qualified basis of non-federally subsidized units, or 30 percent of the qualified basis of units financed with tax-exempt bonds or other federal subsidies, but it must be claimed over a period of 10 years.
Municipal bond funds: A mutual fund that invests in tax-exempt bonds issued by states and municipalities.
Kessel, Reuben. 'A Study of the Effects of Competition in the Tax-Exempt Bond Market.' Journal of Political Economy 79 (July/August 1971): 706-738.
Illegal by reducing tax burden by underreporting income, overstating deductions, or using illegal tax shelters.
Tax-exempt bond ...
That's because a certain percentage of your taxable yield disappears to pay the tax that's due. You can use the formula below to find the equivalent taxable yield you'd need to equal the yield you'd realize on a tax-exempt bond.
 See also: Banks, Billion, Expense, Saving, Compensation
  
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