flower bond
- 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
- Despite the low interest rate, the flower bond appealed to the investor because of its unique redeemable feature for estate taxes.
- The heirs decided to use the flower bond to offset a portion of the federal estate taxes.
- 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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