An investor would like to have $5,000 available at the end of each of the next 3 years. He has a choice of 3 bonds to invest in, each with a par value of $1,000:
i. 1 year 4% annual coupon bond with a yield rate of 3%
ii. 2 year 5% annual coupon bond with a yield rate of 6%
iii. 3 year 6% annual coupon bond with a yield rate of 5%
How much of each bond will he need to spend today to exactly match his desired cash flows?