WHAT IS A PORTFOLIO?

$10.$WHAT ARE THE FACTORS TO CONSIDER IN MANAGING BOND PORTFOLIO

$5$ RISK ASSOCIATED WITH BONDS

Zero $-$ coupon bond is selling at $C100,000$ with a maturity value of $C120,000.$ A pension fund knows that it has a total liability of $C115,000$ to pay in $5-$years time. The zero$-$ coupon bond is being sold at the same time with a bond class A with a face value of $C90,000$ but paying coupon of $5\%$ per annum. Both bonds have $5-$years to mature. Which bond should the pension fund purchase to meet the impending liability. The bond class A is also selling for $C100,000.$