Tax-Exempt Bonds
A bond, the interest on which is excludable from gross income for federal income tax purposes.
bond-basics
Tax-Advantaged Bonds
Includes Tax-Exempt Bonds, Tax Credit Bonds, and Direct Pay Bonds.
See Also
Tax Credit Bond
A taxable bond that provides a tax credit to the holder in lieu of tax-exempt interest.
Direct Pay Bond
A taxable bond that offers a federal Interest subsidy to the Issuer in lieu of the interest being excludable from federal income tax.
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Hundreds of Terms and Concepts
Underwriter’s Discount
The difference between the amount an underwriter pays the issuer for the bonds at the closing (i.e., the purchase price) and the price at which the underwriter sells the bonds to the public (i.e., the issue price).