Vogril Company issued 20-year, zero coupon bonds with an expected yield to maturity of 6.60%. The bonds have a par value of $1,000 and were sold for $278.52 each. What is the expected interest expense on these bonds for Year 8? Do not round your intermediate calculations.

A. $35.94
B. $22.43
C. $33.64
D. $28.75
E. $32.49


Answer: D

Business

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