At the beginning of his tax year, Eric bought a corporate bond with a maturity...
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At the beginning of his tax year, Eric bought a corporate bond with a maturity value of $34,000 from the secondary market for $26,200. The bond has a stated annual interest rate of 5 percent payable on June 30 and December 31, and it matures in 5 years on december 31.
Absent any special tax elections, how much interest will eric report from the bond this year and in the year the bond matures?
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