Series 7 - General Securities Representative Exam

Training Mode

Unit 1 Unit 2 Unit 3 Unit 4

Jeffrey G bought 6.5% debentures at 95 with 10 years to maturity. In 5 years the bond price has risen to 97. If he were to sell his bonds at 97, which of the following is the MOST likely tax consequence in the year of the sale?

$200 per bond capital gain

A

$100 per bond capital gain

B

$10 per bond capital gain

C

$5 per bond capital loss

D