Income bonds provide the same tax advantage as regular coupon paying bonds but have an advantage of:

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Income bonds have the advantage of not being in default if a coupon payment is omitted due to a lack of corporate income, which means the issuer is not obligated to make the payment unless they have the financial capacity to do so. This provides a greater level of flexibility to the issuer and can result in lower overall costs of borrowing.

Income Bonds Provide the Same Tax Advantage as Regular Coupon