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

question 3

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

---

Definitions:

Eric Foner

An American historian, specializing in the Civil War era, Reconstruction, and slavery.

Patrilineal

A system where lineage, inheritance, and social identity are traced through the father's line.

Indian Tribes

Indigenous peoples in the United States with distinct cultures, languages, and territories, recognized as sovereign entities with their own governments and rights.

Mound Builders

Prehistoric indigenous peoples of North America who constructed various types of earthworks, including large mounds used for ceremonial, burial, and residential purposes.