A zero coupon bond with a face value of $1,000 is issued with an initial price of $400. The bond matures in 11 years. What is the implicit annual interest rate on the bond? NOTE: Assume all bonds (unless otherwise noted) have a $1,000 face value, which is a promise to pay $1,000 at maturity (when the loan comes due). When bonds pay interest over the life of the loan, we refer to these interest payments as coupons. A