| Bonds Bought at Par Value |
Determining the cost basis of a
bond or note purchased at
"par value" is easy--it's always
par value.
Par value means a cost of $100
for each $100 of maturity value,
the face amount of the note or
bond.
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A. If you bought a TAXABLE bond at PAR and redeemed it at MATURITY:
Your cost basis is par value, the face amount of the bond.
B. If you bought a TAX-EXEMPT bond at PAR and redeemed it at MATURITY:
Your cost basis is par value, the face amount of the bond.
C. If you bought a TAXABLE bond at PAR and sold it PRIOR to maturity:
Your cost basis is par value, the face amount of the bond.
D. If you bought a TAX-EXEMPT bond at PAR and sold it PRIOR to maturity:
Your cost basis is par value, the face amount of the bond.
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