You have an obligation to pay $1,488 in four years and 2 months.In which bond would you invest your $1,000 to accumulate this amount,with relative certainty,even if the yield on the bond declines to 9.5% immediately after you purchase the bond?
A) a 6-year; 10% coupon par value bond
B) a 5-year; 10% coupon par value bond
C) a 5-year; zero-coupon bond
D) a 4-year; 10% coupon par value bond
E) none of the above
Correct Answer:
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