For Tax Purposes,the Implicit Annual Interest for Any One Year

Multiple Choice

For tax purposes,the implicit annual interest for any one year on a zero coupon bond is equal to

A) zero.
B) the annual change in the bond's value as determined by amortizing the loan.
C) the current yield.
D) the face value multiplied by the current market rate of interest.
E) the face value minus the current market value.