Sergio Acquires a $100,000 Ternco Corporation Bond (5%, 20- Year

Sergio acquires a $100,000 Ternco Corporation bond (5%, 20- year bond) on January 1, 2018 for $75,000. The bond had been issued on January 1, 2016. If Sergio holds the bond to maturity, at redemption he will recognize

A) a mix of ordinary income and long- term capital gain.
B) a long- term capital gain.
C) $0 gain or loss.
D) ordinary income.