Question
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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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
