Calculate the amount of taxes b will pay on the interest


Individual B buys a bond with a par value of $1, 000 and a coupon rate of 5% where the payments are made annually. The purchase price is $975. It expires in exactly 3 years and the par value will be paid a that time. B is in the 20% tax bracket for capital gains and for interest income. Calculate the amount of taxes B will pay on the interest income and the capital gains for this security over the three year period.

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Financial Management: Calculate the amount of taxes b will pay on the interest
Reference No:- TGS02309070

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