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QUESTION 9 Peter buys ten zero-coupon bonds with a maturity of 30 years for a total of $4,119.87. Assume he buys the bonds on June
QUESTION 9 Peter buys ten zero-coupon bonds with a maturity of 30 years for a total of $4,119.87. Assume he buys the bonds on June 30th. How much interest will he have to report for tax purposes for the first year? Assume annual compounding for simplicity. a. $0 because it is a zero-coupon bond. b. $61.80. c. $123.60. d. $300.00. QUESTION 10 Monique is buying a 30-year Treasury bond that has a bid price of 98.02 and an ask price of 98.08. What is the price Monique should expect to pay if she is buying one bond? a. $980.20. b. $980.63. C. $980.80. d. $982.50
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