What is the implicit interest in first year of bonds life

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Suppose you purchase a zero coupon bond with a face Value of $1,000, maturing in 20 years, for $213.80. Zero coupon bonds pay the investor the face value on the maturity date. What is the implicit interest in the first year of the bond’s life?

Reference no: EM13946784

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What is the implicit interest in first year of bonds life : Suppose you purchase a zero coupon bond with a face Value of $1,000, maturing in 20 years, for $213.80. Zero coupon bonds pay the investor the face value on the maturity date. What is the implicit interest in the first year of the bond’s life?

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