Bonnie paid 9 500 for corporate bonds that have a
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?
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