Bond Year Law and Legal Definition

Bond year means, “in reference to an issue, each 1-year period that ends on the day selected by the issuer. The first and last bond years may be short periods. If no day is selected by the issuer before the earlier of the final maturity date of the issue or the date that is 5 years after the issue date, bond years end on each anniversary of the issue date and on the final maturity date.” [26 CFR 1.148-1; Title 26 -- Internal Revenue; Chapter I -- Internal Revenue Service, Department Of The Treasury; Subchapter A -- Income Tax; Part 1-Income Taxes; Normal Taxes And Surtaxes; Computation Of Taxable Income; Tax Exemption Requirements For State And Local Bonds]