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You have an obligation to pay $1,488 in four years and two months. In which bond would you invest your $1,000 to accumulate this amount,
You have an obligation to pay $1,488 in four years and two months. In which bond would you invest your $1,000 to accumulate this amount, with relative certainty, even if the yield on the bond declines to 9.5% immediately after you purchase the bond?
A. | A 6-year; 10% coupon par value bond |
B. | A 5-year; 10% coupon par value bond |
C. | A 5-year; zero-coupon bond |
D. | A 4-year; 10% coupon par value bond |
E. | None of the options |
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