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As the buyer of a zero-coupon bond, you will pay income tax on the implicit interest you earn each year even though you receive no

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As the buyer of a zero-coupon bond, you will pay income tax on the implicit interest you earn each year even though you receive no cash from the bond until it matures. If you could purchase such a bond for 5415.89 today and redeem it in 26 years for $1,000, how much implicit interest, in dollars, will you earn in the first year of the band's fe? # X

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