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A 25-Year Zero Coupon Bond with a Face Value of $1,000

Question 77

Multiple Choice

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


A) $14.44
B) $37.00
C) $14.48
D) $21.47
E) $31.25 A 25-year zero coupon bond with a face value of $1,000 is issued at an initial price of $463.34.What is the implicit interest,in dollars,for the first year of the bond's life? Assume semiannual interest. A) $14.44 B) $37.00 C) $14.48 D) $21.47 E) $31.25 A 25-year zero coupon bond with a face value of $1,000 is issued at an initial price of $463.34.What is the implicit interest,in dollars,for the first year of the bond's life? Assume semiannual interest. A) $14.44 B) $37.00 C) $14.48 D) $21.47 E) $31.25

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