Which of the following statements is true about a zero coupon bond?

a.A zero coupon bond is taxed as a capital gain at the time the bond matures.

b.A zero coupon bond is issued at a substantial discount below its par value.

c.A zero coupon bond is issued at a coupon rate that adjusts for inflation.

d.The interest received every year on a zero coupon bond is taxed as interest income.

e.The discount on the issue of a zero coupon bond is written off over its life in the investor's financial statement.