Baccalaureate Bond
Baccalaureate Bond Meaning:
A type of bond issued by some states in the US to assist people to save money for college tuition fees. They are tax-free but have a coupon rate of zero (that is, they don't pay interest).
A type of bond issued by some states in the US to assist people to save money for college tuition fees. They are tax-free but have a coupon rate of zero (that is, they don't pay interest).
The maturity dates of baccalaureate bonds are timed to coincide with due dates for tuition fees, and some offer a small discount on tuition fees for colleges in the state issuing them if they are used to pay for this.