Several years ago, Judy purchased a $1,000 par value corporate bond in the secondary market for $965. Although the bond still has several years until maturity, similar bonds in the marketplace are now selling at a premium with a market price of $1,065. If Judy were to sell her bond, how much, if any, would be treated as a capital gain

Respuesta :

Answer: $100

Explanation:

The capita gain is simply the difference between the price that Judy bough the bond at and the price of the bond should Judy decide to sell it now.

Capital gain is therefore:

= Selling price - Buying price

= 1,065 - 965

= $100