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Several years ago you purchased a zero coupon Treasury bond. At the end of last...

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Accounting

Several years ago you purchased a zero coupon Treasury bond. At the end of last year its YTM was 4% and it had 12 years until maturity. At the end of this year the YTM has fallen to 2% and you decide to sell it. What is your Federal tax liability for this year? Note: Answer in dollars, rounding to the nearest cent. Assume your marginal tax rate is 25% and the long term capital gains tax rate is 15%

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