Tax
Compulsory charges levied by a governmental unit for the purpose of raising revenue.
bond-basics
Taxable Bond
A Bond, the Interest on which is not excludable from gross income for federal income tax purposes.
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.
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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Term of the Week
Securities Act of 1933
Law designed to ensure that investors are provided with material information about new issues of securities offered for sale to the public.