If you purchased a bond with face value $10 000 and coupon of 6 percent,then sold it for $10600 a half year later,you would have to pay tax on the capital gain as well as tax on the coupon payment of $300.

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The capital gain from selling the bond for $10600 instead of its face value of $10000 would be $600. This gain would be taxable. Additionally, the coupon payment of $300 would also be taxable as income. Therefore, both the capital gain and the coupon payment would be subject to taxation.

If You Purchased a Bond with Face Value $10 000