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Since you received only interest on your bonds, you did not sell them. You would answer "NO".
Enter No when TurboTax asks you did you sell stocks or bonds. When bonds are redeemed, the principal is not taxed, only the interest which is why you received the 1099-INT Form. Please follow the steps below to enter your 1099-INT Form.
For additional information, please review the TurboTax article Guide to Investment Bonds and Taxes.
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