A newly issued 20-year maturity, zero-coupon bond is issued with a yield to maturity of 8% and
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A newly issued 20-year maturity, zero-coupon bond is issued with a yield to maturity of 8% and face value $1,000. Find the imputed interest income in:
(a) the first year;
(b) the second year;
and
(c) the last year of the bond’s life.
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