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Constant yield method

    0.06 sec.
Constant yield method
Allocation of annual interest on a zero-coupon security for income tax use.


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0025 X 5 years), X must allocate the OID to each year based on the constant yield method described in Regs.
Taxpayers currently accounting for stated interest on short-term consumer loans under the Rule of 78s method may automatically change to the constant yield method under the general automatic method change procedures of Rev.
For example, if a series of futures contracts or options is used to hedge an interest-rate risk from a taxpayer's issuance of fixed interest-rate debt, any gain or loss on the hedging transactions should be accounted for using a constant yield method over the instrument's life.
 
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