______ bonds have a tax advantage because the tax is deferred until the bond is sold or matures if the bonds were originally sold at par.

Question

Quizplus · Accepted Answer

Market discount bonds have a tax advantage because the bondholder can defer the tax on the bond's accrued interest until the bond is sold or matures if the bonds were originally sold at a discount. Junk bonds, fallen angel, and speculative-grade bonds do not necessarily offer any tax advantages.

______ Bonds Have a Tax Advantage Because the Tax Is