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Tax Consequences. Katie paid $9,300 for a Ginnie Mae bond with a par value of $10,000 and a coupon rate of 5.5%. Two years later,
Tax Consequences. Katie paid $9,300 for a Ginnie Mae bond with a par value of $10,000 and a coupon rate of 5.5%. Two years later, after having received the annual interest payments on the bond, Katie sold the bond for $9,804. What are her total tax consequences if she is in a 24% marginal tax bracket? Katie's total tax consequences are $ (Round to the nearest dollar.) Return on Bonds. Timothy has an opportunity to buy a $1,000 par value corporate bond with a coupon rate of 5% and a maturity of five years. The bond pays interest annually. If Timothy requires a return of 9%, what should he pay for the bond? If Timothy requires a return of 9%, the amount he should pay for the bond is $ (Round to the nearest cent.)
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