Suppose an institution has an investment horizon of 3 years. Its portfolio consists of $1,000 three-year zero-coupon bonds that are trading at a yield to maturity of 10 percent. The portfolio ______ immunized at the beginning of the three-year period. The portfolio ____ be immunized one year later.

a.

is; will

b.

is not; will

c.

is; will not

d.

is not; will not

e.

None of the above.