bond-basics

Taxable Bond

A Bond, the Interest on which is not excludable from gross income for federal income tax purposes.


See Also

Tax

Compulsory charges levied by a governmental unit for the purpose of raising revenue. 

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.


In Contrast To

Tax-Exempt Bonds

A bond, the interest on which is excludable from gross income for federal income tax purposes.

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Security Interest

A special legal interest in property, fixtures or revenues that exists by contract as Security for payment or performance of an obligation.