Solved

You Just Bought a 5-Year Zero Coupon Bond with a $1,000

Question 4

Multiple Choice

You just bought a 5-year zero coupon bond with a $1,000 face value for $735.67. What is the taxable capital gain on this bond next year?

A) $274.33
B) $68.51
C) $169.47
D) $46.64

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