A firm has liabilities with a present value of $,5000, a Macaulay duration of 12, and a Macaulay convexity of 195. The firm uses Redington immunization to create a portfolio consisting of two of the following three zero-coupon bonds redeemable at par:

Bond	Maturity	Par Value	Effective Yield
A	5 years	1000	8%
B	10 years	1000	8%
C	20 years	1000	8%

Find the dollar amounts invested in each bond.

(A) $1,000 in Bond A and $4,000 in Bond B

(B) $2,000 in Bond A and $3,000 in Bond C

(C) $2,666.67 in Bond A and $2,333.33 in Bond C

(D) $3,000 in Bond B and $2,000 in Bond C

(E) $4,000 in bond B and $1,000 in Bond C