Given the following bond information: 
What would be the taxable income on this bond if it were purchased at this price on June 1st and sold December 1st for a price of 103.00 and has face value of $20 000 and a semi-annual coupon payment?
A) Taxable capital gain of $800 and interest of $630.
B) Taxable capital gain of $400 and interest of $315.
C) Taxable capital gain of $1600 and interest of $656.
D) Taxable capital gain of $200 and interest of $157.50.
Correct Answer:
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