Investments & Financial Planning
What Are Arbitrage Bonds ?
Arbitrage bonds are municipality issued bonds issued intended to gain an interest rate advantage by refunding a higher rate bond in ahead of their call date. Lower rate refunding issue proceeds are invested in Treasuries until the first call date of the higher rate issue.
Note If you need professional help with "Investments & Financial Planning" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.