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Yield burning

Definition: [crh] A municipal bond financing method. Underwriters in advance refundings add large mDefinition: arkups on US Treasury bonds bought and held in escrow to compensate investors while waiting for repayment of old bonDefinition: ds after issuance of the new bonds. Since bond prices and yields move in opposite directions, when the bonds arDefinition: e marked up, they "burn down" the yield, which may violate federal tax rules and diminishes tax revenues.

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