Just call us Bond. Amortized bond.
Over 700 finance terms, Shmooped to perfection.
The tax rate for ordinary income is way higher (like almost twice as much) than it is for capital gains (profits you've gotten on investments you've held for a short period of time).
Moral of the story: Hold on to your investments for more than a year, or the government will consider it ordinary income and take more of it from you.