George purchased a U.S. Series EE savings bond for $624. The bond has a maturity value in 10 years of $1,000 and yields 3% interest. This is the first Series EE bond that George has ever owned.

a. George can defer the interest income until the bond matures in 10 years. 

b. George must report ($1,000 – $624)/10 = $37.60 interest income each year he owns the bond. 

c. The interest on the bonds is exempt from Federal income tax. 

d. George can report all of the $376 as a capital gain in the year it matures. 

e. None of these