Yield Reduction Payment

A Yield Reduction Payment is a payment transaction that is permitted by tax regulations or governmental unit to reduce an yield.

• See: Tax Regulation, Yield, Arbitrage Transaction, Tax Reduction Act.

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References

2016

• (MSRB, 2016) ⇒ http://www.msrb.org/Glossary/Definition/TRANSFERRED-PROCEEDS.aspx Retrieved 2016-10-23
  • QUOTE: A payment permitted by the tax regulations in certain situations made by an issuer to the federal government in order to reduce the yield on investment of bond proceeds to meet yield restriction requirements under the Internal Revenue Code and thereby protect the tax-exempt status of the bonds. See: ARBITRAGE; YIELD RESTRICTION. Compare: ARBITRAGE REBATE.

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