You buy a zero coupon bond at the beginning of the year that has a face value of $1,000, a YTM 0f 7 percent, and 25 years to maturity. If you hold the bond for the entire year, how much in interest income will you have to declare on your tax return?© BrainMass Inc. brainmass.com October 10, 2019, 1:31 am ad1c9bdddf
One thing you need to know about zero coupon bond is that it does not pay interest. It is sold at a lower price and matures at its face value. ...
This solution helps with a question involving a zero coupon bond.