William plans to attend college for 3 years. His first day of college will be one year from today. He expects tuition to cost $15,000 in the first year. He also estimates that the college will increase his tuition by 4% each year for the next two years. Tuition costs are due at the beginning of each academic year. William would like to exactly match these liabilities using the following assets:

1. a one-year coupon bond with annual coupon of 3% and a yield to maturity of 4%
2. a two-year zero coupon bond with a yield to maturity of 4.5%
3. a three-year coupon bond with annual coupons of 7% and a yield to maturity of 5%

What is the total cost of the asset portfolio that will exactly match the liabilities?

a. 41,900

b. 42,300

c. 42,700

d. 43,100

e. 43,500