flower bond

Definition of "flower bond"
  1. A type of Treasury bond that can be redeemed at its original price before it reaches its maturity date, specifically when it's used to pay federal estate taxes
How to use "flower bond" in a sentence
  1. Despite the low interest rate, the flower bond appealed to the investor because of its unique redeemable feature for estate taxes.
  2. The heirs decided to use the flower bond to offset a portion of the federal estate taxes.
  3. It's beneficial to hold a flower bond as it can be redeemed at par value if used for federal estate tax liabilities.

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