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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Observational Research

A method of data collection involving the systematic recording of observable behaviors, events, or conditions without direct interaction.

Median

Midpoint of a series, with an equal number of items above and below.

Statistical Abstract

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