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You buy a zero coupon bond at the beginning of the year that has a face value of $1,000, a YTM of 10 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 10 percent, and 14 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?

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