As computed under the Code provisions applicable to bonds, the internal rate of return that causes the present value of the payments of principal and interest (and, in certain cases, certain other payments) on an issue of bonds to equal the issue price of the bonds.
The amount of Gross Proceeds of a Tax-Exempt Bond Issue that may be permanently invested at a materially higher Yield than the Yield on the Tax-Exempt Bonds (even if no Temporary Period or exception to Yield restriction applies), equal to the lesser of 5% of the sale proceeds of the Bonds or $100,000.
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Profit from differences in markets. All tax-advantaged bonds are subject in one way or another to the arbitrage requirements, which are contained in Section 148 of the Code and the Treasury Regulations that go along with it.