Tax on Bonds

[kiwi2007]

I know that the interest received on bonds is taxable and will count as income  however I can't find out whether a capital gain made on either selling them, or when they're redeemed, is taxable?
Anyone know for sure?

[Ferg]

On redemption the 'gain' (assuming you bought a $1 bond for less than $1) is considered a 'financial arrangement' and is taxable.  I believe there are differing methods for recognising annual income over a multi year period.