On January 1st Julie bought a 7-year,zero coupon bond with a face value of $1,000 and a yield to maturity of 5.80%.Assume that Julie's tax rate is 25.00%.How much tax will Julie have to pay on the bond the first year she owns it? Do not round your intermediate calculations.
A) $8.89
B) $11.04
C) $10.26
D) $9.77
E) $9.87
Correct Answer:
Verified
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