Multiple Choice
A zero-coupon bond with a face value of $1,000 is issued at an initial price of $375. The bond matures in 20 years. What is the implicit interest, in dollars, for the first year of the bond's life?
A) $17.25
B) $18.85
C) $20.50
D) $21.20
E) $23.50
Correct Answer:
Verified
Correct Answer:
Verified
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