William plans to attend college for 3 years. His first day of college will be one year from today. He expects tuition to cost $15,000 in the first year. He also estimates that the college will increase his tuition by 4% each year for the next two years. William would like to exactly match these liabilities using the following assets: I. a one-year coupon bond with annual coupon of 3% and a yield to maturity of 4% II. a two-year zero coupon bond with a yield to maturity of 4.5% III. a three-year coupon bond with annual coupons of 7% and a yield to maturity of 5% What is the total cost of the asset portfolio that will exactly match the liabilities? a. 41,900 b. 42,300 c. 42,700 d. 43,100 e. 43,500

1. descriptive statistics quickly describe large amounts of data can predict future stock returns with surprising accuracy statisticians understand non-numeric information, like colors refer mainly to patterns that can be found in data 2. a 15% return on a stock means that 15% of the original purchase price of the stock returns to the seller at the end of the year 15% of the people who purchased the stock will see a return the stock is worth 15% more at the end of the year than at the beginning the stock has lost 15% of its value since it was originally sold 3. a stock purchased on january 1 cost $4.35 per share. the same stock, sold on december 31 of the same year, brought in $4.75 per share. what was the approximate return on this stock? 0.09% 109% 1.09% 9% 4. a stock sells for $6.99 on december 31, providing the seller with a 6% annual return. what was the price of the stock at the beginning of the year? $6.59 $1.16 $7.42 $5.84