Question: So what happens when you end up with a zero - coupon bond that is sold at a discount? Special OID ( Original Issue Discount

So what happens when you end up with a zero

-

coupon bond that is sold at a discount? Special OID

(

Original Issue Discount

)

rules apply, right? Can anyone tell me what that means? Note that this may mean that you are paying tax on the amortization of the discount for that year even if you don't actually receive any money from that bond.

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