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Consider this OID bond: face value is $1,000, and maturity is 10-year. It pays a zero coupon, semiannually. This bond was issued today and sold
Consider this OID bond: face value is $1,000, and maturity is 10-year. It pays a zero coupon, semiannually. This bond was issued today and sold at a price of $311.05. Suppose you bought it, what would be the implicit interest in dollars for the first year of this bond life?
a. $47.72 | ||
b. $38.53 | ||
c. $41.47 | ||
d. $57.63 | ||
e. $45.89 |
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