Suppose you purchase a zero coupon bond with a face value of $1,000, maturing in 22 years, for $215.30. 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?

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$17.11 answer

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

Question state $215.30 not $215. Did you read question?

Sorry. ...sir I calculate in a hurry....thats why missed that.....only just put 0.30.....calculation is correct

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