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Which is true about the interest on corporate bonds?

Ait is tax deductible
Bit is taxed as ordinary income
Cit is taxes as a capital gain
Dit does not incur taxes

Verified Answer :

Interest corporate bonds is taxed as anĀ income tax but can also be tax as capital gain. Usually the interest itself is considered as state income tax. For gain and losses, that's the time it will gain capital gain if the if is redeemed before its maturity stage.