Your client, Jolie, is consider making a significant investment in Series EE US government savings bonds. Jolie tells you that she has a 3-year-old daughter and would like to start saving for her college education. You remind Jolie that Series EE bonds are original issue discount bonds which dont pay annual interest, are issued at a discount to its face amount which represents the amount paid at maturity. Briefly summarize the relevant US federal income tax issues that Jolie should consider in making this investment, including the importance of Jolies marginal income tax rate and any potentially important tax elections related to this investment.