Arbitrage Bond
Arbitrage Bond Meaning:
A type of bond issued by municipal governments at a lower rate of interest than another, earlier bond issue.
A type of bond issued by municipal governments at a lower rate of interest than another, earlier bond issue.
Arbitrage Bond Example:
Proceeds from arbitrage bond issues are re-invested until the maturity of the earlier bond issue, at which point they are liquidated and the funds used to repay holders of the earlier issue.
Proceeds from arbitrage bond issues are re-invested until the maturity of the earlier bond issue, at which point they are liquidated and the funds used to repay holders of the earlier issue.