Nick has to pay the following annual tuition fees at the end of each year over the next three years for his university education

Year 1: $12,000

Year 2: $15,000

Year 3: $18.000

Nick wants to immunise this financial obligation by investing in zero corporate bonds.

The current market interest rate is 8% per annum. What is the face value of coupon bonds that Sam should invest?

a.$38.260

b.$45,000

c. $44,913

d. $45,712

e. None of the answers