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2. You are investing approximately $10,000 for five years purchasing a bond. One option is a typical (vanilla) bond with a semiannual coupon payment, which
2. You are investing approximately $10,000 for five years purchasing a bond. One option is a typical ("vanilla") bond with a semiannual coupon payment, which has a coupon rate of 2% and is sold and redeemed at face value. Another is a "zero-coupon" bond (a bond that does not pay regular coupon payments but redeemed at an amount more than the amount paid in), which is sold at $9,052.87 and redeemed at $10,000. Finally, it is also possible to buy another vanilla bond with a coupon rate of 3%, sold at 104.74 and redeemed at face value. Consider which of the bonds is more advantageous and briefly explain your conclusion
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