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You buy aten-year $1,000 par valuezero-coupon bond. The YTM is6%. You are planning to hold the bond to maturity. What is your tax liability on
You buy aten-year $1,000 par valuezero-coupon bond. The YTM is6%. You are planning to hold the bond to maturity. What is your tax liability on this after one year(assuming tax rate of34%)?
A.
$11.39
B.
$9.38
C.
$0
D.
$4.27
E.
$17.68
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