Question $12(1$ point$)$

Marilyn Lightstone purchased a principal$-$protected note $($PPN$)$ for $$25,000.$ The rate

of return on the PPN is linked to the S&P$/$TSX $60$ index. Five years later, when the

PPN matured, it was worth $$30,000.$ How would the $$5,000$ gain received by

Marilyn from her PPN investment be taxed?

Capital gains

Interest

It could be either capital gains or interest because Marilyn could tell her

accountant which tax option she would prefer to use

As Marilyn held the investment to maturity, she has no tax liability to Canada

Revenue Agency