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Given the Following Bond Information: Issuer, Coupon, Maturity, Price and Yield

Question 81

Multiple Choice

Given the following bond information: Issuer, coupon, maturity, price and yield:
Ontario 3.150 2022-Jun-02 99.00 3.28
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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