A $1,000 face value, five-year zero coupon bond is issued to yield 10% per year, compounded semiannually. Using the amortization approach, determine the implicit interest expense that the issuer deducts (and the owner pays tax on) during the first year. 68.30 69.38 $62.09 $77.22 $62.93

A $1,000 face value, five-year zero coupon bond is issued to yield 10% per year, compounded semiannually. Using the amortization approach, determine the implicit interest expense that the issuer deduct (and the owner pays tax on) during the first year. 68.30 69.38 $62.09 $77.22 $62.93