For Tax Purposes, There Is No Original Issue Discount on a Bond

question 126

True/False

For tax purposes, there is no original issue discount on a bond unless the bond is issued for less than its face value and the difference between the face value and the bond issue price is at least one-fourth of 1 percent of the redemption price at maturity multiplied by the number of years to maturity.

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Definitions:

Libidinal Energy

A term from psychoanalytic theory referring to the psychic energy derived from instinctual biological drives, especially sexual desire.

Erogenous Zones

Areas of the human body that are particularly sensitive to stimulation and can lead to sexual arousal when touched or stimulated.

Psychosexual Development

Sigmund Freud's theory outlining how personality develops through a series of childhood stages in which the pleasure-seeking energies of the id focus on distinct erogenous zones.

Libidinal Energy

A term primarily used in psychoanalysis to denote the instinctual sexual drive or desire that motivates human behavior.