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

Question 17

Multiple Choice

A zero coupon bond with a face value of $1,000 is issued with an initial price of $463.34. The bond matures in 25 years. What is the implicit interest,in dollars,for the first year of the bond's life?


A) $9.08
B) $12.56
C) $14.48
D) $21.47
E) $31.25

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