1.148-4 (b)(4) Yield recomputed upon transfer of certain rights associated with the bond.

For purposes of section 1.148-3, as of the date of any transfer, waiver, modification, or similar transaction (collectively, a TRANSFER) of any right that is part of the terms of a bond or is otherwise associated with a bond (e.g., a redemption right), in a transaction that is separate and apart from the original sale of the bond, the issue is treated as if it were retired and a new issue issued on the date of the transfer (REISSUED). The redemption price of the retired issue and the issue price of the new issue equal the aggregate values of all the bonds of the issue on the date of the transfer. In computing yield on the new issue, any amounts received by the issuer as consideration for the transfer are taken into account.