A company must make a payment of $250 in one year, a payment of $400 in two years and a payment of $710 in three years. The only investments available are 1-year zero coupon bonds, 2-year zero coupon bonds, and 3-year 9% annual coupon bonds. These bonds are maturing at par and could be purchased in any quantity. The company created a portfolio to exactly match its liabilities. Determine the ratio Y/X where X and Y are the face values of the 1-year and 2-year bonds, respectively. A. 0.56 B. 0.91 C. 1.36 D. 1.78 E. 1.91

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