An investor is building a portfolio of medium-quality, two-year, zero coupon corporate bonds. She measures project-specific risk in future cash flows and uses time value equations with the Opportunity Investment Method to analyze potential purchases. Which discount rate should she use in her computations? Choose all the correct answers.

None of the listed answers.

rm

The historical weighted-average, corporate bond discount rate.

The EAIR for equivalent muni-bonds

rocc