Sergio Acquires a $100,000 Ternco Corporation Bond (5%,20-Year Bond)on January

question 117

Multiple Choice

Sergio acquires a $100,000 Ternco Corporation bond (5%,20-year bond) on January 1,2019 for $75,000.The bond had been issued on January 1,2017.If Sergio holds the bond to maturity,at redemption he will recognize

• A)$0 gain or loss.
• B)ordinary income.
• C)a long-term capital gain.
• D)a mix of ordinary income and long-term capital gain.

---

Definitions:

Adaptive Immunity

The branch of the immune system that involves memory, allowing for a faster and more specific response to pathogens previously encountered.

Plasma Cells

A type of white blood cell that produces and secretes large volumes of antibodies.

Clonal Selection Theory

A fundamental principle in immunology that explains how lymphocytes proliferate and differentiate in response to specific antigens, leading to immune memory.

B Cells

A type of white blood cell that plays a significant role in the body's immune response by producing antibodies.