Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price. Arbitrage is when an asset (stocks, currencies, etc.) is bought in one market and sold in another for a higher price.An arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state. An arbitrage involves buying an asset on one market while simultaneously selling the same asset on another market for a higher price. The profit from buying something in one market and selling it in another. Arbitrage can be defined as the concurrent purchase and sale of similar assets in different markets in order to take advantage of price differentials. Arbitrage is the process of simultaneous buying and selling of an asset from different platforms, exchanges or locations to cash in on the price difference. Arbitrage refers to a profit making activity where buying and selling of a security is done on different exchanges or markets. Arbitrage is the process of simultaneously buying one instrument and selling another security short (also known as shorting a security) Interest on the Series C Bonds will be includible in the gross income of the holders thereof for federal income tax purposes.