Question: Suppose you purchase a zero coupon bond with face value $1,000, maturing in 25 years, for $180. What is the implicit interest, in dollars,

Suppose you purchase a zero coupon bond with face value $1,000, maturing

Suppose you purchase a zero coupon bond with face value $1,000, maturing in 25 years, for $180. What is the implicit interest, in dollars, in the first year of the bond's life? A) $2.86 B) $ 9.84 C) $12.78 D) $19.27 E) $30.00

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