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Peter buys ten zero-coupon bonds with a maturity of 30 years for a total of $4,119.87. Assume he buys the bonds on June 30th. How

Peter buys ten zero-coupon bonds with a maturity of 30 years for a total of $4,119.87. Assume he buys the bonds on June 30th. How much interest will he have to report for tax purposes for the first year? Assume annual compounding for simplicity.

a. $0 because it is a zero-coupon bond.

b. $61.80.

c. $123.60.

d. $300.00.

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