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You just bought a zero-coupon bond, with a $1000 face value for $508.35. The bond matures in 10 years and has a yield-to-maturity (YTM) of

You just bought a zero-coupon bond, with a $1000 face value for $508.35. The bond matures in 10 years and has a yield-to-maturity (YTM) of 7%. If you hold the bond for an entire year, how much interest income will you have to declare on your tax return?

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