Pedro purchases a $30,000 4% 15 year bond for $25,000 when it was issued on 3/1/2020. If Pedro holds the bond to maturity in 2035 he will recognize on redemption:

Select one:

a. $5000 ordinary income.

b. $0 gain or loss.

c. $5,000 long-term capital gain.

d. $5000 a mix of ordinary income and long-term capital gain based on the accrued interest income