Katie paid $9400 for an Ontario Hydro bond with a par value of $10 000 and a

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Katie paid $9400 for an Ontario Hydro bond with a par value of $10 000 and a coupon rate of 6.5 percent, compounded semi-annually. Two years later, Katie sold the bond for $9700. What are her total tax consequences if she is in a 25 percent marginal tax bracket?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Personal Finance

ISBN: 978-0134724713

4th Canadian edition

Authors: Jeff Madura, Hardeep Singh Gill

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