A zero-coupon bond with a face value of $1,000 is issued with an initial price of $430.84

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A zero-coupon bond with a face value of $1,000 is issued with an initial price of $430.84 based on semiannual compounding. The bond matures in 20 years. what is the implicit interest.

In dollars for the first year of the bond's life?

Related Book For answer-question

Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

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Posted Date: May 12, 2023 11:28 PM

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A zero-coupon bond with a face value of $1,000 is issued with an initial price of $430.84

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The implicit interest of a zerocoupon bond is the difference between the face value and t... View the full answer

Engineering economy

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