Premium & Discount Munis: the De Minimis Rule (Simplified)
This lesson is part of the course
In this lesson
You compute each bond's de minimis floor price, classify it as premium, de minimis discount or market discount, and estimate the tax due when it repays at par.
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Lessons in this course
- Tax-Equivalent Yield: Federal Only and Federal + State Locked
- Break-Even Tax Bracket: When Does the Muni Win? Locked
- Yield to Maturity & Yield to Call with RATE Locked
- Yield to Worst: the Lowest Yield over the Call Schedule Locked
- GO vs Revenue Bonds: Debt Service Coverage from Pledged Revenues Locked
- Credit Spreads vs Ratings: Spread to the AAA Curve Locked
- Premium & Discount Munis: the De Minimis Rule (Simplified) Locked
- Muni vs Corporate vs Treasury after Tax (Chart) Locked