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Katie paid $9,400 for a corporate bond with a par value of $10,000 and a coupon rate of 6.5%. She holds the bond for 2
Katie paid $9,400 for a corporate bond with a par value of $10,000 and a coupon rate of 6.5%. She holds the bond for 2 full years and then sells the bond for $9,700. Since Katie is in the 25% marginal tax bracket, how much tax will she have paid during the time she held the bond? (Ignore Long-term capital gains)
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