Home (Tax-exempt bond)
Home  
 
 
Home » Stock market » Tax-exempt bond


 

Tax-exempt bond

Stock market Tax-deferred retirement planTax-exempt income

Tax-exempt bond
Definition:
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. ...

 


The safest investments of tax-exempt bond instruments are U.S. Treasury securities. These securities are debt obligations issued and backed by the U.S. government.

Tax-Exempt Bonds
Municipal securities whose interest is exempt from federal income tax.
T-Bills
See Treasury Bills.

TAX-EXEMPT BOND - Another term for a municipal bond, other than taxable municipal bonds.

Tax-exempt bond: A bond, generally issued by a municipality or other government entity, whose interest is not subject to federal, and potentially state and local, income taxes.

tax-exempt bond
A common term for municipal bonds. The interest on the bond is excluded from the gross income of its owners for federal income tax purposes under Section 103 of the Internal Revenue Code of 1954, as amended.

However, tax-exempt bonds may or may not be the best choice for your investments. You should always make sure that you check around before buying stock or bonds.

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.

In the case of a tax-exempt bond transaction, the primary taxpayers are the beneficial holders of the bonds.

While taxable bonds normally pay higher interest rates than tax-exempt bonds, they sometimes provide a lower overall yield.

As it relates to tax-exempt bonds, arbitrage is the ability to invest proceeds received from the sale of tax-exempt debt in higher-yielding taxable securities. For example, if a tax-exempt bond issue is sold at a yield of 5.

A tax-exempt bond issued by a state or local government agency to finance industrial or commercial projects that serve a public good.

2 Amend Information Reporting Requirements to Include Interest on Tax-Exempt Bonds
2.6.3 Amortization of Geological and Geophysical Expenditures for Major Integrated Oil & Gas Companies
2.6.

Municipal Bond - A longer-term, tax-exempt bond issued by a state or a local government. A general obligation municipal bond is backed by the general taxing power of the issuing government.

treasury bond issues
i bonds
tax-exempt bonds
junk bonds
unrated bonds
Bonds are supposed to be the more conservative portion of most people's portfolio - there to produce income and offset the volatility of stocks.

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.

See also: Bonds, Bond, Securities, Interest, Investment

Stock market Tax-deferred retirement planTax-exempt income

 
 rssRSS