Question $25$

Jerry purchased a U$.$S$.$ Series EE savings bond for $$744.$ The bond has a maturity value in $10$ years of $$1,000$ and yields $3\%$ interest. This is the first Series EE bond that Jerry has ever owned.

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

b$.$ Jerry must report $$25\mathrm{.}60[\frac{\text{\$}1,000-\text{\$}744}{10}]$ interest income each year he owns ane bond.

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

d$.$ Jerry can report all of the $$256$ as a capital gain in the year it matures.