bond-basics

Bond

Evidence of the borrowing by an Issuer and a debt instrument for tax purposes. Each Bond is an agreement on the part of an Issuer to repay the Principal of the Bond in certain amounts and at a specified time or times and to pay Interest from the Dated Date of the Bond to the day it Matures or is redeemed.

All the Bonds

Learn more about the various types of municipal obligations you may encounter.


See Also

Security

Any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest or evidence of any participation in any profit-sharing agreement.

Hudson Yards Rail Yards

Start with the Bond Basics

120% Rule

Rule outlined in Section 147(b) of the code that states private activity bonds are not tax-exempt bonds if the weighted average maturity of the bond issue exceeds 120% of the average reasonably expected economic useful life of the facilities financed with the bond proceeds.