XYZ company has to pay its customers $2,000 after 2 years and $6,000 after 4 years. In order to fund these payments, the company will buy one year and five year zero coupon bonds. The current market interest rate is 10%. The company wants to immunize itself from potential interest rate risk (Redington Immunization). Which of the following portfolios would ensure XYZ achieves immunization? Purchase a one year zero coupon bond with face value $1,503.51 and a five year zero coupon bond with face value $6,014.04. Purchase a one year zero coupon bond with face value $1,818.18 and a five year zero coupon bond with face value $6,600.00. Purchase a one year zero coupon bond with face value $2,490.61 and a five year zero coupon bond with face value $5,615.50. Purchase a one year zero coupon bond with face value $3,257.70 and a five year zero coupon bond with face value $4,492.40. Purchase a one year zero coupon bond with face value $3,758.78 and a five year zero coupon bond with face value $3,758.78.

XYZ company has to pay its customers $2,000 after 2 years and $6,000 after 4 years. In order to fund these payments, the company will buy one year and five year zero coupon bonds. The current market interest rate is 10%. The company wants to immunize itself from potential interest rate risk (Redington Immunization). Which of the following portfolios would ensure XYZ achieves immunization? Purchase a one year zero coupon bond with face value $1,503.51 and a five year zero coupon bond with face value $6,014.04. B Purchase a one year zero coupon bond with face value $1,818.18 and a five year zero coupon bond with face value $6,600.00. Purchase a one year zero coupon bond with face value $2,490.61 and a five year zero coupon bond with face value $5,615.50. D Purchase a one year zero coupon bond with face value $3,257.70 and a five year zero coupon bond with face value $4,492.40. E Purchase a one year zero coupon bond with face value $3,758.78 and a five year zero coupon bond with face value $3,758.78