A zero coupon bond with a face value of $1,000 is issued with an initial price of $400.50. The bond matures in 23 years. What is the implicit interest, in dollars, for the first year of the bond's life? Use semiannual compounding.

Hint. Compute the ytm as of today, use the ytm to get the price one year from today, take the difference in prices.

a)9.40

b) 16.25

c) 5.05

d) 10.10