1. As long as interest rates are positive , zero coupon bond always sells at a premium before maturity date. Is it true or false?

2.A zero - coupon bond with a face value of $1,000 is issued with an initial price of $ 387.50 . The bond matures in 30 years . What is the implicit interest , in dollars , for the first year of the bond's life?

a)12.44

b)10.38

c)14.47