Gina purchased an original issue discount bond several years ago She paid $138,000 for the $200,000 face value bond She sold the bond this year for $173,000 Is all of Gina 's gain long term capital gain Why or why not ...

Because the bond had an original issue discount Gina had to amortize that dis ...

Gina purchased an original issue discount bond several years ago. She paid $138,000 for the $200,000 face

Question:

Gina purchased an original issue discount bond several years ago. She paid $138,000 for the $200,000 bond. She sold the bond this year for $173,000. Is all of Gina's gain long-term capital gain? Why or why not?
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...