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Topic: Profit/loss on sale of bonds (

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donmayor
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Joined: 19 Jan 2012
Online Status: Offline
Posts: 1

Posted: 19 Jan 2012 at 08:46 \| IP Logged

I need help on this practical issue.

I buy and sell bonds on a daily basis. I buy 10,000 units
of a bond series at USD 90 today. I buy 8000 of that bond
series at $95 tomorrow. I sell 5000 units of the bond
series at $92 tomorrow.
What should be the holding cost of my bonds before the
sale?
Should profit/loss be recognized on the $90 or the $95
bond?

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