What is the implicit interest

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A zero coupon bond with a face value of $1,000 is issued with an initial price of $463.34. The bond matures in 25 years. What is the implicit interest, in dollars, for the first year of the bond's life?

  • $9.08
  • $12.56
  • $14.48
  • $21.47
  • $31.25

Reference no: EM131019216

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