tax-exempt bond

Tax-exempt bond

A bond usually issued by municipal, county, or state governments whose interest payments are not subject to federal and, in some cases, state and local income tax.

Tax-Exempt Bond

A bond issued by a local or state government. Municipal bonds are usually used to raise capital for improvements in infrastructure or other aspects of the municipality. For example, a city or school district may issue a tax-exempt bond to build a new school or a new playground. They are called tax-exempt bonds because they are exempt from federal income taxes and sometimes from state and local taxes as well. Tax-exempt bonds usually pay lower coupons than corporate bonds, but because the yield is tax-free, the after-tax basis may be higher for the tax-exempt bond. Risk varies according to the municipality and the particular type of bond.

tax-exempt bond

See municipal bond.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

References in periodicals archive ?

(1) The majority of municipal bond issuances in 2012 and 2013 came from tax-exempt bonds. Because of this, the article will mainly focus on the tax-exempt bond issuances for those years.

Municipal bonds, 2012-2013

The new Vanguard Tax-Exempt Bond Index Fund will be the firm's first tax-exempt index fund and ETF.

Vanguard to Offer Its First Muni Bond Index Fund, ETF

According to the groups, tax-exempt bond financing is the primary mechanism for financing the majority of state and local infrastructure investments; in fact, three quarters of all U.S.

NLC calls for continued tax-exempt financing of municipal bonds

-Dallas Clean Energy McCommas Bluff LLC prices USD40.2m tax-exempt bond issuance

Real estate finance company, Red Stone Partners, has unveiled a $250 Million Tax-Exempt Bond Fund.

United States : Red Stone Launches $250M Bond Fund

Freddie Mac and Municipal Mortgage Holdings Inc., New York--a subsidiary of New York-based Citigroup Inc.--announced in September that, with the collaboration of Citi Community Capital, New York, and Municipal Capital Markets, Dallas, Citi closed its first tax-exempt bond securitization (TEBS) with Freddie Mac.

Freddie Mac closes $548 million TEBS deal with Citi

A self-check on post-issuance compliance in this area is not only prudent, but likely a necessity, given the current regulatory environment in the United States, coupled with the continued national presence of the IRS' tax-exempt bond group.

IRS compliance checks and audits continue

MassDevelopment has announced the closing of a $12 million tax-exempt bond issue for Devens Recycling Center LLC (DRC) at a groundbreaking ceremony.

Bond supports C&D recycling facility project

A municipal bond, also known as a tax-exempt bond, is a debt instrument issued by a state, county, city, or other non-federal governmental agency.

Chapter 5 Municipal bonds

12-Month Total Name Ticker Yield Return * Muni National-long-Term Eaton Vance National Municipals A EANAX 6.03 10.02 First Investors Insured Tax-Ex II A EIITX 3.37 7.92 TIAA-CREF Tax-Exempt Bond TCTEX 3.53 7.87 Fidelity Spartan Municipal Income FHIGX 4.31 7.61 Schwab Long-Term Tax-Free Bond SWNTX 3.91 6.73 Muni National-Intermediate Strong Intermediate Municipal Bd Inv SIMBX 3.56 7.47 Evergreen Intermediate Muni Bd A ESTVX 3.50 6.63 State Farm Tax Advantaged Bond A SFTAX 3.87 7.34 Harris Insight Tax-Exempt Bond N HXBAX 4.28 6.65 Delaware Tax-Free USA Intermediate A DMUSX 3.67 7.36 3-Yr.

A less taxing way to invest: the yields on municipal bond funds are tempting--and tax exempt, too

Private Activity Bond Tests, by Sharon Stanton White (Thompson/ West, 2004), is a reference binder/ looseleaf that provides answers on private activity limits on the use of tax-exempt bond finance facilities.

Private Activity Bond Tests

Prior research has focused on measuring implicit taxes by comparing indexes of newly issued tax-exempt bond yields with those of U.S.

Implicit taxes: evidence from taxable, AMT, and tax-exempt state and local government bond yields