Which of the following types of investors would be most likely to purchase zero coupon bonds?

Hint 1: zero coupon bonds (deep discount bonds) pay no coupons and their price approaches 1000 as they come closer to maturity.

Hint 2: capital gains are taxed.

a.Tax-free institutional investors such as pension funds

b.Individuals in high tax brackets

c.Risk-averse individuals anticipating increases in interest rates

d.Individuals with no interest income

e.Retired individuals seeking income for current consumption