The Internal Revenue Service limits the amount of earnings a government can make when investing the proceeds from its general obligation bonded debt.

Name: The Internal Revenue Service limits the amount of earnings a government can make when investing the proceeds from its general obligation bonded debt.
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The IRS imposes arbitrage restrictions to prevent governments from earning excessive profits by investing bond proceeds at higher yields than the interest rate on the bonds.

The Internal Revenue Service Limits the Amount of Earnings a Government