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At the beginning of his current tax year, Eric bought a corporate bond with a maturity value of $34,000 from the secondary market for $26,200.
At the beginning of his current tax year, Eric bought a corporate bond with a maturity value of $34,000 from the secondary market for $26,200. The bond has a stated annual interest rate of 5 percent payable on June 30 and December 31, and it matures in five years on December 31. |
Absent any special tax elections, how much interest income will Eric report from the bond this year and in the year the bond matures? |
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