$X is the purchase price of a 10,000 10-year zero coupon bond that is redeemable at par. $Y is the price of a $10,000 10-year accumulation bond that pays coupons at j₂ = 4% that is redeemable at par. Both bonds are priced j₂ =3%.

Calculate | X Y |.

• A.

  $3,433.73

• B.

  $174.29

• C.

  $3,270.29

• D.

  $3,608.02