Arbitrage bonds
Municipality issued bonds issued intended to gain an interest rate advantage by refunding a higher-rate bond in ahead of their call date. Lower-rate refunding issue proceeds are invested in Treasuries until the first call date of the higher-rate issue. | ||||
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Arbitrage Bonds definition was found in categories: Business & Finance(1)
Arbitrage Bonds Definition from Business & Finance Dictionaries & Glossaries
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Arbitrage Bonds
Obligations issued by a state or a political subdivision in contravention of the Internal Revenue Code which results in the obligations becoming taxable.
Obligations issued by a state or a political subdivision in contravention of the Internal Revenue Code which results in the obligations becoming taxable.