A customer buys Kingdom of Sweden bonds in the secondary market at a discount. Which statements are TRUE?

I		If the bonds are held to maturity, the discount is taxed as a capital gain
II		If the bonds are held to maturity, the discount is taxed as ordinary income
III		The interest received is exempt from Federal, State, and Local tax
IV		If the bonds are sold prior to maturity, the investor may have a capital gain or loss

A I and III

B I and IV

C II and III

D II and IV