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You have to pay 2,000 in six months, 1,500 in 12 months, and 3,500 in 18 months. The bonds available for purchase (at any face
You have to pay 2,000 in six months, 1,500 in 12 months, and 3,500 in 18 months. The bonds available for purchase (at any face amount) are: Six-month zero-coupon bonds, sold to yield 6% nominal interest convertible semiannually. 12-month 6% par-value bonds with semiannual coupons. 18-month 5% par-value bonds with semiannual coupons. You purchase bonds to exactly cashflow match your liabilities to your assets. What is the sum of the face amounts of those bonds? (A) 6,661 (B) 6,711 (C) 6,761 (D) 6,811 (E) 6,861
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