How do you calc. cost basis on individual bond bought 1999?

Question

thanks for your response lovely78, but aren't you forgetting reinvested interests? If so is the sum of interests based on a simple growth or compounded growth? I think it's simple.

Answer 1

If the interest is reinvented, you don't have a single bond. The closest I can think of the what you describe is a zero-coupon bond. These are sold at below face value, pay no interest, and are redeemed at face value when mature. I believe you are supposed to declare interest income at the 'effective interest rate' each year you hold the bond. I highly recommend consulting a tax professional on this issue.

Answer 2

cost basis is what you paid for it at that time.