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An investor purchases a zero coupon bond with 23 years to maturity at a price of $303.81. The bond has a par value of $1,000.

An investor purchases a zero coupon bond with 23 years to maturity at a price of $303.81. The bond has a par value of $1,000. What is the implicit interest for the first year? Assume semiannual compounding.

Multiple Choice

$16.56
$15.38
$14.13
$15.61
$16.15

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