Yes, check the box for Gain/Loss is Ordinary. Because the entire transaction is ordinary income, this option will have no affect on the tax rate. However, see the post below for instructions on reporting the redemption.
Per Expert DianeW:
If the OID instrument has matured and been redeemed you should use the instructions below.
The correct procedure is to adjust the basis on the sale. In other words add all previously taxed income to the cost basis of the bond and then report the sale.
Your gain or loss is the difference between the amount you realized on the sale, exchange, or redemption and your basis in the debt instrument. Your basis, generally, is your cost increased by the OID you have included in income each year you held it.
In general, to determine your gain or loss on a tax-exempt bond, figure your basis in the bond by adding to your cost the OID you would have included in income if the bond had been taxable. For a covered security, your broker will report the adjusted basis of the debt instrument to you on Form 1099-B.
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