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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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