An investor purchased a corporate zero-coupon bond on the offering at a price of 51. The bond matures in 17 years and has a yield to maturity of 4.04%. Seven years later, the bond is sold at a price of 73 ¾. What are the tax consequences of the sale?
A) Loss of $262.50
B) Gain of $227.50
C) Gain of $25.76
D) No gain or loss until maturityNo gain or loss until maturity
