On January 1st Julie bought a 7-year,zero coupon bond with a face value of $1,000 and a yield to maturity of 5.60%.Assume that Julie's tax rate is 25%.How much tax will Julie have to pay on the bond the first year she owns it?
A) $9.94
B) $11.38
C) $10.80
D) $9.56
E) $8.13
Correct Answer:
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