Today's financial term of the day is Baccalaureate Bond.
This particular bond is a zero coupon bond that is issued by particular states in order to help families save up for college tuition through the form of additional tax benefits. Baccalaureate bonds are usually issued through small denominations and often offered with different maturities. This system makes it easier to invest and also pay the yearly college tuition. There are some states that even add certain benefits to the bonds like tuition discounts.
Come back tomorrow for a new term of the day!
