Taxable Bond

Taxable Bond

A bond on which the yield is taxable. All corporate bonds and some municipal bonds are taxable. On a taxable bond, one is usually assessed capital gains tax on the coupon payments. One is also liable for taxation if the bond was issued at a discount and redeemed at face value. See also: Tax-exempt bond.
References in periodicals archive ?
Example 1: Assume, hypothetically, that a taxable bond fund yields 4%, and a muni fund with similar characteristics (default risk, interest rate risk) yields 3%.
Based outside Chicago, McDonnell specialises in municipal and taxable bond strategies and manages USD 11.7bn in assets.
The financing included a tax-exempt bond of $11.2 million and a taxable bond of $750,000.
taxable bond team, portfolio manager of the US GNMA Bond Strategy, and co-portfolio manager of the Total Return Bond Strategy, will succeed Wiese.
The second bond series sold Tuesday, a taxable bond worth $40.99 million, had bidders.
equity, international equity and taxable bond funds -- each having more than $200 billion in inflows.
The government has notified a new 7.75 per cent taxable bond scheme to replace the earlier 8 per cent scheme for retail investors.
On Thursday, the Center announced to launch 7.75 percent savings bonds to enable resident citizens and Hindu Undivided Families (HUF) to invest in a taxable bond, without any monetary ceiling.
Taxable bond funds collected net deposits of $20.2 billion, with high-yield debt ETFs garnering nearly $5 billion.
* Taxable bond funds, while enjoying gains, constituted less than a quarter of mutual fund assets in January.
Investors withdrew an estimated $43 billion from taxable bond mutual funds [in June 2013], the largest-ever monthly outflow."
In comparison, maintaining the tax status of a taxable bond is unimportant.