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You have an obligation to pay $1,488 in four years and 2 months.In which bond would you invest your $1,000 to accumulate this amount, with
You have an obligation to pay $1,488 in four years and 2 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 above
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