A $1,000 zero coupon bond matures in five years and sells for $784 to yield 5 percent. The accrued interest for the first year is $39. You are in the 30 percent federal income tax bracket. What is tax owed on the interest if the bond is (a)in your regular personal account or (b)in your Roth retirement account (IRA)?

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The Answer of A $1,000 zero coupon bond matures in five years and sells for $784 to yield 5 percent. The accrued interest for the first year is $39. You are in the 30 percent federal income tax bracket. What is tax owed on the interest if the bond is (a)in your regular personal account or (b)in your Roth retirement account (IRA)?

A $1,000 Zero Coupon Bond Matures in Five Years and Sells