Suppose an Investor Purchases a Five-Year, Zero-Coupon Treasury Security for $58.48

Multiple Choice

Suppose an investor purchases a five-year, zero-coupon Treasury security for $58.48 with a maturity value of $100. The investor could instead buy a six-month Treasury bill and reinvest the proceeds every six months for five years. The number of dollars that will be realized will ________.

A) be independent of spot and forward rates.
B) not depend on the six-month forward rates.
C) depend solely on the six-month spot rate today.
D) depend on the six-month forward rates.