Jane,a cash basis taxpayer,purchased a publicly traded bond at $6,000 less than its redemption value to adjust for changes in the interest rate. Which of the folloowing statements is true?
a. if the bond is held to maturity,the $6,000 will be recognized as a capital gain,
b.if the bond is held to maturitythe $6,000 will be recognized as ordinary income,
c.None of these are true statements,
d. she must accrue the market discount as interest income over the life of the bond.