However, negotiable bonds are traded on the over-the-counter bond market, and their prices fluctuate. This means you can have a capital gain or loss when the issuer redeems the bond. Profits that result from differences in the purchase and the sale or redemption value must be calculated ...
Corporations, financial institutions and foreign governments frequently borrow money via short-term bonds called commercial paper. These bonds generally mature in 270 days or less. Rather than try to schedule interest payments, issuers sell the bonds at a discount off the par value. For exam...