A newly issued 20-year maturity, zero-coupon bond is issued with a yield to maturity of 5.5% and face value $1,000. Find the imputed interest income in: (a) the first year; (b) the second year; and (c) the last year of the bond’s life. (Round your answers to 2 decimal places.)

imputed interest income for first year is $18.85

imputed interest income for second year is $19.89

imputed interest income for last year is $52.14

Explanation:

given data

maturity time = 20 year

yield to maturity = 5.5%

face value $1,000

solution

first we get here constant yield for year 0 , 1 , 2 , 19, 20

constant yield =    ............1

constant yield for year 0 so maturity time = 20

constant yield for year 0 = = 342.72

constant yield for year 1 = = 361.57

constant yield for year 2 = = 381.46

constant yield for year 19 = = 947.86

constant yield for year 20 =  = 1000

so  imputed interest income for first year is =  361.57 -  342.72 = $18.85

and imputed interest income for second year is = 381.46 - 361.57  = $19.89

and imputed interest income for last year is = 1000 - 947.86 = $52.14

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

i believe the answer is: streets and roads

public property refers to the property that can be used by all legal citizens in a certain country. the public property was created and maintain using the government budget that allocated specifically for it. the budget itself come from the citizen's income tax payment.