A company has purchased a bond at a price of $956. The par value of the bond is $1,000 and the original term to maturity is five years. The applicable capital gains tax rate is 25%. Based on the information provided on the bond issue, the company:

A. will not need to pay any capital gains taxes on the maturity of the bond issue.

B. will need to declare capital gains of $44 at the maturity of the bond issue only.

C. will need to include $8.8 in taxable income every tax year for 5 years and declare a capital gain of $44 at maturity.