Chapter 2 - Gross Income and Exclusions - easytaxexam

Taxpayers must report interest income on Series EE savings bonds as the interest accrues. ... An investor is comparing the following two bonds: a bond from ABC Corp which pays an interest rate of 9 percent per year and a municipal bond which pays an interest rate of 7.9 percent per year. The investor is in the 22 percent tax bracket. ................
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