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A zero-coupon bond matures in seven years and sells for $800. What is the difference between the annual yield to maturity (with annual payments) and
A zero-coupon bond matures in seven years and sells for $800. What is the difference between the annual yield to maturity (with annual payments) and effective annual rate (with semi-annual payments)?
A. 3.239%
B. 2.119%
C. 1.632%
D. 1.607%
E. 0.026%
F. 0.000%
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