1. Steven Price invests in high quality bonds. He currently holds several of such bonds, all of which have a par value of $1000 and pay a fixed rate of interest twice a year.
   1. A 10 year bond issued by the Duffy Corporation. The bond was originally sold to the public at par, but due to an increase in interest rates, Steven purchased it for $960 when the bond had 40 months to maturity.
   2. A 10 year bond issued by Concourse Corp. The bond was first sold to the public for $950, but because of a fall in interest rates, Steven purchased the bond in the open market for $970 four years later when $10 of original issue discount had accrued. Two years later, when an additional $5 of original issue discount had accrued, Steven sells the bond in the open market for $990.
   3. Same as (e) except Steven purchased the bond in the open market for $1020 instead of $970 and holds it to maturity.

For each of the above, describe how the discount and/or premium should be treated by Steven. You need not calculate the amount of premium or discount amortized, but your answer should precisely describe the tax requirements relating to discount and premium adjustments, if any