GUS, Inc. wants to issue zero-coupon bonds with a face value of $1,000 and a term to maturity of 3 years.

Requirement 1: What is the current price of this bond to an investor with a required yield to maturity of 7 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Current bond price $

Requirement 2: Assume the investor purchases the bond at the price you determined in Requirement 1 above. How much would the investor have to report as interest in Year 2 for tax purposes?

Interest in Year 2 $