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At the Beginning of the Year,you Purchased a 5-Year Zero

Question 4
Multiple Choice

At the beginning of the year,you purchased a 5-year zero coupon bond with a yield to maturity of 6.80% and a face value of $1,000.Your tax rate is 30%.What is the total tax that you will have to pay on the bond during the first year? Do not round your intermediate calculations. A) $18.06 B) $12.63 C) $14.68 D) $13.65 E) $13.36

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