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Bond washing
When a bond-holder sells a security-cum-interest and buys it back after the coupon is paid so as to convert the interest income into a capital gain. This is worthwhile only where lower tax rates apply to capital gains. See also Bond, Coupon.
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- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Financial services
- Category: General Finance
- Company: Reuters
- Product:
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