You purchase a 6 percent 10000 bond for 9180 plus 156 in ac

. You purchase a 6 percent $10,000 bond for $9,180 plus $156 in accrued interest for a total outlay of $9,336. Subsequently you receive a $300 interest payment. You are in the 20 percent income tax bracket. How much tax do you owe on the interest payment?

Solution

you don\'t owe taxes on the purchase of a bond.

If you receive $300 interest on the bond and your rate is 20%, that would be = $300 x 20% = $60