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A Zero-Coupon Bond with a Face Value of $1,000 Is

Question 341

Multiple Choice

A zero-coupon bond with a face value of $1,000 is issued with an initial price of $387.50. The bond matures in 30 years. What is the implicit interest, in dollars, for the first year of the bond's life?


A) $10.38
B) $12.44
C) $14.42
D) $18.79
E) $22.50

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