The IRS interest rates on overpayments and underpayments for the third quarter of 2022 are one percentage point higher than in the second quarter (Rev. Rul. 2022-11). This is the second interest rate increase this year. The rates are:
The difference between face value of a bond and lower market price, attributable to rising interest rates. On a sale, gain on the bond is generally taxed as ordinary income to the extent of the discount.