Joe must pay liabilities of 1,000 due six months from now and another 1,000 due one year from now. There are two available investments:

1. a 6-month bond with face amount of 1,000, a 10% nominal annual coupon rate convertible semiannually, and a 4% nominal annual yield rate convertible semiannually; and

2. a one-year bond with face amount of 1,000, a 5% nominal annual coupon rate convertible semiannually. and a 6% nominal annual yield rate convertible semiannually.

What is Joe's total cost of purchasing the bonds required to exactly (absolutely) match the liabilities?

A. 1922.76

B. 2159.83

C. 2,385. 36

D. 2,774.91

E. 3,092.74

Joe must paylabilities of 1,000 due six months from now and another 1,000 due one year from now. There are two available investments 1. a 6-month bond with face amount of 1,000, a 10% nominal annual coupon rate convertible semiannually, and a 4% nominal annual yield rate convertible semiannually and 2. a one year bond with face amount of 1,000, a 5% nominal annual coupon rate convertible semiannually and a 6% nominal annual yield rate convertible semiannually What is Joe's total cost of purchasing the bonds required to exactly absolutely match the liabilities? O A 1922.76 O B.2159.83 OC2,385.36 O D. 2.774.91 O E. 3,092.74