You estimate that you will need $15000 in savings in three years for a wedding you are planning on having after you graduate from school. You are looking at the bond market, and wish to immunize your current savings to guarantee that after inflation(which is currently at 3%), you will have approximately $15000 in savings to spend on your wedding. You are thinking of investing in a 5 year 3% zero note, and a 2 year 3% zero note. How much money will you need to invest in each zero today to obtain your goal of $15000 in 3 years? Answer in $cash invested into the 2 year zero, and $cash invested into the 5 year zero(2year, 5year)

Which of the following is correct?

A. 10000,          5000

B.   7500,         7500

C.   4576,         9151

D.    9151,         4576

Answer rating: 100% (QA)

We will ought to distribute the quantity specified the period comes c... View the full answer