An investor purchases a 2-year zero-coupon bond with par value of $1,000 at $960. The implied interest earned on the bond is closest to:?

option c========================

Yes, Option C is the right answer.

C-----------------------------------------------

the Interest earned is $40.00

c. $40 is the answer as the coupon was issued at zero rate hence the interest earned is the difference between the $1,000 - $960 (face value - the actual price paid or market value)

b) $40                                                                                                        ....    

Option C.......................................

It has to be option B close to21 

Answer is (A) - Zero : A zero coupon bond is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity. It does not make periodic interest payments. When the bond reaches maturity, its investor receives its face value. It is also called a discount bond or deep discount bond.