A client purchases a zero$-$coupon bond with a face value of $$10,000$ for $$6,000.$ The bond matures in $5$ years. How is this bond taxed?

Group of answer choices

The client will pay tax on $$4,000$ when the bond matures

The client must include the annually accrued interest in taxable income each year, even though no cash is received

No tax is due until the bond is sold or matures

The client can elect to pay tax either annually or at maturity