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An investor purchases a zero coupon bond with 17 years to maturity at a price of $393.51. The bond has a par value of $1,000.

An investor purchases a zero coupon bond with 17 years to maturity at a price of $393.51. The bond has a par value of $1,000. What is the implicit interest for the first year? Assume semiannual compounding.

Multiple Choice

$21.45

$22.75

$21.14

$22.19

$19.42

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