Question

Which is true about the interest on corporate bonds?
a. it is tax deductible
b. it is taxed as ordinary income
c. it is taxes as a capital gain
d. it does not incur taxes

Answer 1

Interest corporate bonds is taxed as an income tax but can also be tax as capital gain. Usually the interest itself is considered as state income tax. For gain and losses, that's the time it will gain capital gain if the if is redeemed before its maturity stage.