What is the implied annual interest (using the six-month pricing rule) of a five-year, zero-coupon bond with a yield-to-maturity of 8% and a face value of $5,000? 

A) What is the implicit interest of the zero coupon bond in the first year?
B) What is the implicit interest for the second year of the no coupon bond?
C) What is the implicit interest of the third year of the no coupon bond?
D) What is the implicit interest for the fourth year of the no coupon bond?
E) What is the implicit interest for the fifth year of the no coupon bond?

Answer rating: 100% (QA)

To calculate the implied annual interest of a zerocoupon bond using the sixmonth pricing rule we can ... View the full answer