alik paid a premium for a corporate bond when he purchased it for $26,306 on the secondary market. The bond, which matures in ten years, has a par value of $25,000. If Malik does NOT elect to amortize the cost of the premium each year, how does he report the premium on his tax return? He will report $1,306 in taxable interest for the year upon maturity. He will have a $1,306 capital gain upon maturity. He will have a $1,306 capital loss upon maturity. For each year that he owns the bond, he reports a $130.60 adjustment to interest.