DISCUSSION.

The article presents a response to the article "Death and Taxes: The Market for Flower Bonds," by David Mayers and Clifford W. Smith. The author expresses his views on theoretical and empirical analysis of the demand for flower bonds and the incentives for holding them made by Mayers and Smith. As the authors of the original article suggest, when market interest rates exceed the coupon rate, a flower bond is equivalent to a straight bond plus a term life insurance policy. The author considers the effect of estate taxes among individuals with different levels of taxable wealth.