Lottery Bond


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Lottery Bond

1. A bond guaranteed by the proceeds from a lottery. That is, an agency (usually a government agency) collects revenue from a lottery and uses this revenue to secure the bond. This reduces the risk to the bondholder that the bond will default.

2. A bond with a provision stating that the issuer will redeem a certain number of bonds at a premium to their face value. For example, an issuer may sell 10,000 bonds with a face value of $1,000 each, and then announce that it will redeem 2,000 of them for $1,300 at maturity. A lottery bond exists to attract investors because it otherwise has no special features and usually carries a rather low coupon rate. Lottery bonds are issued by a number of European governments, notably France and Belgium.
References in periodicals archive ?
(56) Two issues were sold: an inexpensive lottery bond aimed at the urban population and a more expensive bond offering 4 percent annual interest targeted at collective farmers and craftsmen, both with terms of 20 years.
A Premium Bond is a lottery bond issued by the Government's National Savings and Investments scheme.
The state projects lottery bond debt service coverage to decline to a still comfortable level of 4x in fiscal 2018.
Dennis Richardson, a Central Point Republican and the GOP's chief budget crafter, said Tuesday during a House floor speech that the Legislature should "guard" its small remaining lottery bond capacity "very carefully."
Two years later, voters endorsed a ballot measure authorizing the lottery bond program to finance public school projects.
Two years later, voters approved a statutory measure authorizing the lottery bond program to finance public school projects.
The money is part of $100 million in lottery bond proceeds authorized by the Legislature for "improvements on the entire transportation system," Andersen said.
The debt burden was low at 2.2% of personal income in fiscal 2017 as the state is a modest issuer of debt; 42% of debt issuance is backed by lottery and excess lottery revenue pledge (lottery and excess lottery bonds rated 'A+') with the balance consisting of almost equal amounts of GO and annual appropriation debt.
The biggest surprise was the committee's approval of $6 million in state lottery bonds for the construction of a fieldhouse and other athletic facilities at the former site of Civic Stadium in Eugene.
Swedish lottery bonds are taxed like common stock with tax-free dividends (i.e., the coupon is tax-free and capital gains are taxed).
All together, state lawmakers want to allocate $1.3 billion in general fund and lottery bonds during the next two years.
The Green and Rydqvist (1999) study of Swedish lottery bonds stands out in terms of presenting clean ex-day evidence documenting personal tax effects and serves as a model for future research that isolates tax effects.