# Homework Question Need Help With

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Suppose you purchase a zero coupon bond with a face value of \$1,000, maturing in 22 years, for \$215.00. Zero coupons pays the investor the face value of the maturity date. What is the implicit interest in the first year of the bonds life?

Jul 8th, 2015

1000 FV, 25 N, -180 PV, CPT I/Y = YTM = 7.1%; Year 1 interest = \$180 x .071 = \$12.78

Please let me know if you nea case for torture by michale levined any clarification. I'm always happy to answer your questions.
Jul 8th, 2015

Jul 8th, 2015

yes you are right......sorry.....plz wait

Jul 8th, 2015
https://www.studypool.com/free/221831

Jul 8th, 2015

plz wait...i made a mistake in calculation......thanks

Jul 8th, 2015

my time is running out on the question friend

Jul 8th, 2015

ok....just sending you

Jul 8th, 2015

1000 FV, 22 N, -215 PV, CPT I/Y = YTM = 8.3%; Year 1 interest = \$215 x .012 = \$17.11

Jul 8th, 2015

1000 FV, 22 N, -215 PV, CPT I/Y = YTM = 8.3%; Year 1 interest = \$215 x .012 = \$17.11

Jul 8th, 2015

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Jul 8th, 2015
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Jul 8th, 2015
Nov 19th, 2017
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