Question
You buy a zero coupon bond at the beginning of the year that has a face value of $1,000, a YTM of 9 percent, and
| You buy a zero coupon bond at the beginning of the year that has a face value of $1,000, a YTM of 9 percent, and 11 years to maturity. You hold the bond for the entire year. Assume semiannual compounding. |
| How much interest income will you have to declare on your tax return? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| Interest income | $ |
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International financial management
Authors: Jeff Madura
12th edition
1133947832, 978-1305195011, 978-1133947837
