A zero-coupon bond with a face value of $1,000 is issued at an initial price of $375. The bond matures in 20 years. CRA requires the bondholder to pay tax on the implicit amount of interest earned each year even though it isn't received in cash. What is the implicit interest, in dollars, for the first year of the bond's life?

Select one: A. $20.50 B. $17.25 C. $23.50 D. $21.20 E. $18.85