Accumulation Bond

  

Categories: Bonds, Trading

An accumulation bond is basically a cute zero coupon bond. They simply sell at a discount to par, and the annual imputed appreciation of the bond is viewed by the kindly loving people at the IRS as an accumulation of interest. So the bond holder pays interest each year that accumulates on that bond, essentially sucking liquidity out of their bank accounts, only to be salvaged at the very end, when the bond finally comes due and pays back principal at par.

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Finance: What is the IRS?19 Views

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Finance allah shmoop What is the i r s Well

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i rest might be the three most hated letters in

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the alphabet Well after d m v a pms and

00:13

well maybe std The i r s is the internal

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revenue service Their internal i e inside the government they're

00:21

in charge of collecting revenue A k a They take

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money from your pocket in the form of taxes and

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they deliver it to uncle sam and they you know

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service you and it doesn't feel good So yeah these

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are the guys from the us treasury department who checked

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to make sure you filled out your income tax forms

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correctly and submitted the proper amount And if you screwed

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up in any way they will let you know about

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it and a half in the form of angry letters

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Phone calls knocks on your front door rocks through your

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back window Whatever it takes to get you to pay

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your fair share of taxes Like why should you get

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away with not paying when the jones has paid all

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they owed Or the irs can do even worse and

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audit you with an audit he irs will request extensive

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and very specific information and records from you Paycheck deductions

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all kinds of things You claim that you did that

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were deductible that may or may not have been forcing

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you to spend hours upon hours at your public storage

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unit digging through boxes you hoped and prayed you'd never

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see again Well after the third solid week of having

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your financial history poked and prodded like you've had to

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turn your head and cough you uh might actually be

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