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At the beginning of her current tax year, Angela purchased a zero-coupon corporate bond at original issue for $39,000 with a yield to maturity of
At the beginning of her current tax year, Angela purchased a zero-coupon corporate bond at original issue for $39,000 with a yield to maturity of 5 percent.
Given that she will not actually receive any interest payments until the bond matures in 8 years, how much interest income will she report this year assuming semiannual compounding of interest? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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