But investors may use the ratable method with respect to any other market discount bonds
, unless they choose separately for each bond to apply the constant yield method.
of the exchange for discount bonds
at between 48 and 51 cents per dollar
Unlike certificates of deposit, where deferred income is currently taxed, market discount bonds
allow income recognition to be deferred until maturity or disposition.
A bondholder's adjusted basis is determined under the rules for original issue discount bonds
that are not inflation-indexed (see Q 7737).
(5) In developing the procedures for the Argentine bond exchanges, the parties were able to build upon the structure of the par bonds and discount bonds
created under the Mexican Brady-bond transaction.
State owned Anglo Irish Bank (AIB) (DUB: CKL1) (OTC: AGIBY) has boosted its loss-absorbing capital by EUR1.67bn after buying back at a discount bonds
with a face value of EUR3.2bn, reports Irish Times.
n-period real discount bonds
; if issued in period t, they pay off one unit of consumption with certainty in period t + n.
The law also provides for certain limits on the deductibility of interest expense incurred to purchase or carry market discount bonds
Exhibit 1 summarizes the differences in the taxation of returns on premium bonds, market discount bonds
, and OID bonds for both taxable and tax-exempt municipal bonds.
31, 2003, for those who opt for par and discount bonds
Treasury Bonds, Treasury Inflation Protected Securities (TIPS), and market discount bonds
. The effects of the alternative minimum tax are not ignored, as is all too often the case in financial-planning books.
As in previous years, various means of tax evasion were reported in the survey, which includes illegal accounting, misuse of overseas transactions and changing assets into discount bonds
or gold bullion and concealing them in homes or car trunks.
Covering those aspects of accounting and auditing unique to investment companies, the guide provides new guidance on accounting for offering costs, amortization of premium or discount bonds
, liabilities for excess expense plans, reporting complex capital structures, payments by affiliates, financial statement presentation and disclosures for investment companies and nonpublic investment partnerships.
The government computes its cost of funds by forming the sum of current coupons on long-term coupon bonds and the appreciation on short-term discount bonds
.(6) This measure of the government's cost of funds, shown in figure 1, is a remarkably smooth series, and it is always positive.