If you purchased a 6% bond at par value and sold it 12 months plus 1 day later for $1100,the taxable income you would have realized over the two year period is

Name: If you purchased a 6% bond at par value and sold it 12 months plus 1 day later for $1100,the taxable income you would have realized over the two year period is
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Quizplus · Accepted Answer

The bond pays 6% interest, which is $60 ordinary income. Selling the bond for $1100 after more than a year results in a $100 long-term capital gain.

If You Purchased a 6% Bond at Par Value and Sold