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A retiree intends to purchase bonds that will provide payments of exactly 50,000 at the end of each of the next 3 years. The following

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A retiree intends to purchase bonds that will provide payments of exactly 50,000 at the end of each of the next 3 years. The following 3 bonds are avai able: 1-ye ar zero-coupon bond with a 6% yield to maturity 2-ye ar bond with 7% annual coupons and an 8% yield to maturity 3-ye r bond with 7% annual coupons and a 9% yield to maturity (All rates are annual effective rates.) To the nearest 100, what is the cost of the 1-year zero coupon bond that will be purchased as part of the portfolio to provide the desired payments? A) 40,100 B) 41,200 C) 42,400 D) 43,700 E) A different amount

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