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5 On January 1st of this year, Lou purchased a newly issued zero-coupon bond for $640. The bond matures in 15 years and is priced

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5 On January 1st of this year, Lou purchased a newly issued zero-coupon bond for $640. The bond matures in 15 years and is priced to yield 5.29%. What amount of income must Lou recognize on his tax return this year? 6 In the previous scenario, what is the cost basis of the bond at the end of the year

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