Tax Consequences.
Bonnie paid $9,500 for corporate bonds that have a par value of $10,000 and a coupon rate of 9%, payable annually. Bonnie received her first interest payment after holding the bonds for 12 months and then sold the bonds for $9,700. If Bonnie is in a 35% marginal tax bracket for federal income tax purposes, what are the tax consequences of her ownership and sale of the bonds?
Tax Consequences.