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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
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$16.56
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$15.38
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$14.13
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$15.61
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$16.15
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