Interest income-declare on your tax return

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Reference no: EM131623619

You buy a zero coupon bond at the beginning of the year that has a face value of $1,000, a YTM of 9 percent, and 11 years to maturity. You hold the bond for the entire year. Assume semiannual compounding.

How much interest income will you have to declare on your tax return? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Interest income $

Reference no: EM131623619

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