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zero-coupon bond has 26 years to maturity. 4. A zero-coupon bond is newly issued with a yield to maturity of 7.0% and face value $1,000.

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zero-coupon bond has 26 years to maturity.

4. A zero-coupon bond is newly issued with a yield to maturity of 7.0% and face value $1,000. Find the imputed interest income in: (a) the first year; (b) the year before last; and (c) the last year of the bond's life. (6 points)

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