Arbitrage yield definition
Arbitrage yield means the interest rate percentage representing the percentage of earnings on a bond issue. The arbitrage yield on a bond issue must be calculated in accordance with highly specific and detailed federal tax rules. The arbitrage yield is used as the limit on the yield that may be earned on bond funds that are required to be yield-restricted.
Examples of Arbitrage yield in a sentence
Deliverable: Completed arbitrage rebate report for each bond under contract inclusive of: ▪ Executive Summary detailing the assumptions and methodology used; ▪ Summary Analysis of all relevant dates; ▪ Sources and uses of funds; ▪ Arbitrage yield and yield restriction requirements; ▪ Rebate liability summarized and by fund; ▪ Arbitrage/Investment Yield Comparison Graph; ▪ Rebate Calculations by fund; and ▪ Outstanding Investments Summary.