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.

Hudson Yards Rail Yards

Start with the Bond Basics

Hundreds of Terms and Concepts

Premium

The amount, if any, by which the price paid by the purchaser of a bond exceeds the par value of the bond.