You buy a zero coupon bond at the beginning of the year


You buy a zero coupon bond at the beginning of the year that has a face value of $1000, a YTM of 9 percent, and 12 years to maturity. You hold the bond for the entire year. How much interest income will you have to declare on your tax return?

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Financial Econometrics: You buy a zero coupon bond at the beginning of the year
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