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:

Phonemes

The tiniest elements of sound within a language that can differentiate one word from another.

Morphemes

The smallest grammatical units in a language that carry meaning, such as roots, prefixes, and suffixes.

Semantics

The branch of linguistics concerned with the meaning of words, phrases, sentences, and symbols in language.

Phonology

The study of how sounds function within a particular language or languages.