I will be getting the periodic interest plus the par amount. How do I treat the difference between the YIELD TO MATURITY 2.925661% and the COUPON 1.37500% amount. Is that difference all interest and is any part (excluding the COUPON 1.37500%) exempt from State tax? If it is all interest Is the entire interest reported in the year it matures, or do I have to impute any amounts over the years? Is any part capital gains?
These are from the trade confirmation.
You Bought at 98.445312
TRADE DATE 06-17-22
SETTLEMENT DATE 06-21-22
UNITED STATES TREAS SER M-2023 NTS NOTE
COUPON 1.37500%
MATURITY DATE 06/30/2023
CURRENT YIELD 1.396700
YIELD TO MATURITY 2.925661%
Thanks
