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We also have a taxing issue--if one elects to defer payment on taxes until final maturity (30 years from purchase) or redemption (whichever comes first), all the interest they earned will be treated as income on maturity/redemption, and it will be taxed at ordinary income tax rates

with the following caveats:
- only federal taxes, not state taxes
- and you might be able to avoid those too if you use the proceeds of the bond for higher education for you or a kid.
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