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At the Beginning of the Year,you Purchased a 5-Year Zero

Question 8

Multiple Choice

At the beginning of the year,you purchased a 5-year zero coupon bond with a yield to maturity of 6.8% and a face value of $1,000.Your tax rate is 30%.What is the total tax that you will have to pay on the bond during the first year?


A) $13.95
B) $14.68
C) $15.42
D) $16.19
E) $17.00

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