Question

An investor plans to fund the college education for her newborn child by purchasing $5,000 of investment-grade bonds on an annual basis. She is most likely using A) the 529 plan strategy. B) the bullet strategy. C) the laddering strategy. D) the barbell strategy.

Answer 1

Option B (the bullet strategy) is the correct alternative.

Step-by-step explanation:

• A business model under which a business plan has always been assembled in such a way that perhaps the maturity of the latter's financial instruments would be highly concentrated in the same moment on either the equity market.
• A bullet strategy could become beneficial unless the price level increases for moderate bonds have become greater than those of longer or shorter lending rates.

All those other alternatives provided are not related to the case in question. So the alternative above is accurate.