Which of the following tax effects could not occur with the purchase and sale of a corporate bond?

Question

Quizplus · Accepted Answer

Interest from corporate bonds is taxable at ordinary income tax rates, so option D, where interest is not taxable, is incorrect. Capital gains or losses can occur depending on the sale price relative to the purchase price, and interest income from corporate bonds is generally taxed at ordinary income rates.

Which of the Following Tax Effects Could Not Occur with the Purchase