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2. A zero coupon bond with a face value of $1,000 is issued with an initial price of $383.849. The bond matures in 22 years.
2. A zero coupon bond with a face value of $1,000 is issued with an initial price of $383.849. The bond matures in 22 years. What is the implicit interest, in dollars, for the seventh year of the bond's life? The ytm is compounded semiannually.
Use the PVIFA or PVIF formula and a financial calculator to solve the question.
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