How much interest can the corporation deduct

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Reference no: EM13889086

A corporation just issued a 10 year, zero coupon bonds having a YTM of 10%. Under current tax law, how much interest can the corporation deduct in the first year?

A. 38.56

B. 385.54

C. 424.10

D. 100.00

Reference no: EM13889086

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