See Publication 550 for information on the tax treatment of bond premium.taxmap/pubs/p1212-000.htm#TXMP29c01e0dQualified stated interest.(p2)In general, qualified stated interest is stated interest that is unconditionally payable in cash or property (other than debt instruments of the issuer) at least annually over the term of the debt instrument at a single fixed rate.taxmap/pubs/p1212-000.htm#TX