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.

BREAKING DOWN 'Flower Bond'

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.

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