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Tax Anticipation Bill

A U.S. Treasury bill that an investor purchases at a discount from par and, upon maturity, uses the proceeds to pay a tax liability. Corporations and individuals with large tax liabilities are the main investors in tax anticipation bills. It should not be confused with a tax anticipation note.
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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.