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Vogril Company Issued 20-Year,zero Coupon Bonds with an Expected Yield

Question 2

Multiple Choice

Vogril Company issued 20-year,zero coupon bonds with an expected yield to maturity of 9%.The bonds have a par value of $1,000 and were sold for $178.43 each.What is the expected interest expense on these bonds for Year 8?


A) $29.36
B) $30.82
C) $32.36
D) $33.98
E) $35.68

Correct Answer:

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