arbitrage bond
Defined in 1 dictionary — U.S. Code
United States Code
26 U.S.C. § 148 — in this section (4 versions over time)
For purposes of section 103, the term “arbitrage bond” means any bond issued as part of an issue any portion of the proceeds of which are reasonably expected (at the time of issuance of the bond) to be used directly or indirectly—
(1) to acquire higher yielding investments, or
(2) to replace funds which were used directly or indirectly to acquire higher yielding investments.