Which of the Following Statements Is Not True Regarding Zero-Coupon

Which of the following statements is not true regarding zero-coupon bonds?

A) They are issued at a deep discount from par value.
B) Investors are taxed on the total amount of interest earned at maturity.
C) The issuing firm is permitted to deduct the amortized discount as interest expense for federal income tax purposes, even though it does not pay interest until maturity.
D) Zero-coupon bonds are purchased mainly for tax-exempt investment accounts, such as pension funds and individual retirement accounts.
E) All of the above are true.