Tax consequences of her ownership and sale of the bonds

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Bonnie paid $9400 for corporate bonds that have a par value of $10000 and a coupon rate of 10.2 %, payable annually. Bonnie received her first interest payment after holding the bonds for 11 months and immediately sold the bonds for $9658. If Bonnie is in a 33 % marginal tax bracket for federal income tax purposes, what are the tax consequences of her ownership and sale of the bonds (Hint: Assume that there are no state income taxes.)

Reference no: EM132044877

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