Amt \Amt\, n.; pl. {Amter}, {E}. {Amts}. [Dan. & Norw., fr. G.] An administrative territorial division in Denmark and Norway.
Each of the provinces [of Denmark] is divided into several amts, answering . . . to the English hundreds. --Encyc. Brit. [Webster 1913 Suppl.]
For example, Chicago O'Hare International Airport last week sold a $100 million AMT issue that is offering investors 8.19% on the final, 30-year maturity.
But despite the higher yields, investors aren't snapping up AMT bonds.
The bite from the alternative minimum tax, or AMT, on this $10 million gap is $1 million.
Analysts say that as more issues come to market and as confusion about the alternative tax wanes, buying and selling AMT bonds will become easier, and the difference in yield from conventional municipal bonds will narrow.
Bonds due in 1993-2000 and 2013 are Series 12 and are not subject to the AMT.
Series G bonds, the interest on which isn't subject to the federal alternative minimum tax (AMT), total $22.15 million.
So until these people file their first full-year returns under the new tax law, brokers say, the uncertainty over the minimum tax will hurt demand for AMT bonds.
The new AMT rate of 24% (up from 21% for 1990) sounds like a bargain compared with the regular top stated rate of 31%. But the AMT rate is applied to a larger income base.
The new AMT rate of 24% (up from 21% for 1990) sounds like a bargain compared with the regular top stated rate of 31%. But the AMT rate is applied to a larger income base.
Investors, some of whom may not have incomes high enough to be subject to the AMT tax, found the yield attractive, the Lehman official explained.