Marlene, a cash basis taxpayer, invests in Series EE U. S. government savings bonds and bank certificates of deposit (CDs). Determine the tax consequences of the following on her 2019 gross income. If an amount is zero, enter "0".
a. On September 30, 2019, she cashed in Series EE bonds for $10,000. She purchased the bonds in 2009 for $7,090. The yield to maturity on the bonds was 3.5%. The Series EE bonds are not subject to the original issue discount rules.
Her 2019 gross income from the bonds is $ ?

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan