Ralph Purchased His First Series EE Bond During the Year

question 52

True/False

Ralph purchased his first Series EE bond during the year. He paid $709 for a 10-year bond with a $1,000 maturity value. The yield to maturity on the bonds was 3.5%. Ralph is not required to recognize the $291 ($1,000 - $709) original issue discount until the bond matures. However, Ralph can elect to amortize the discount over the ten-year period.

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Definitions:

Poor Grammar

Incorrect or improper use of language rules that can lead to misunderstandings and diminish the credibility of the message.

Unprofessionalism

Behavior or conduct that is not in accordance with the standards expected in a professional setting.

Passive Voice

A grammatical voice common in many languages where the subject of the sentence is the recipient of an action.

Passive Voice

A grammatical construction where the subject of the sentence is acted upon by the verb.