Accountant-Man
Level 13
02-12-2020
12:42 PM
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Not necessarily. Some bonds were sold at 50% of face value, therefore the difference between cost and face was interest income. And if they were held past maturity and they continued to accrue interest then that would also be interest income.
IE, $500 face value bond sold for $250, cashed in and received $700. $450 is income.
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