Flower Bond


DEFINITION of 'Flower Bond'

Fixed income products that were originally purchased by investors at a discount for the purpose of paying federal estate taxes upon their maturity.


Investors would purchase these bonds before their death in anticipation of federal estate taxes. If the bondholder passed away, the bonds would mature at par value and be used as payment for the deceased's federal estate taxes.

Also known as estate tax anticipation bonds, the last of these bonds matured in 1998.

  1. Maturity

    The period of time for which a financial instrument remains outstanding. ...
  2. Bond

    A debt investment in which an investor loans money to an entity ...
  3. Par Value

    The face value of a bond. Par value for a share refers to the ...
  4. Estate Tax

    A tax levied on an heir's inherited portion of an estate if the ...
  5. Estate

    All of the valuable things an individual owns, such as real estate, ...
  6. Taxes

    An involuntary fee levied on corporations or individuals that ...
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