Series 82: 3.4.4.8.3. Discount Bonds

Taken from our Series 82 Online Guide

3.4.4.8.3. Discount Bonds

When a bond is bought at a discount in the secondary market, the bondholder has the same two alternatives at tax time. If he chooses to accrete the discount over the life of the bond, each year’s accreted amount is added to his annual taxable

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