Thank you George,
I guess my confusion is that the FMV of the bond will have likely changed at the point of each principal payment. So say the FMV of the total bond changed from $200.17 from date of death to $198.97 prior to the first interim principal payment, which, if I'm thinking about it correctly, would in turn create a net loss (albeit minor in this case). So that brings me back to how to calculate the cost basis of the principal portion returned since it doesn't show on my 1099. Thanks, Steve
