Question

Gail would like to save for her child's college expenses, to begin in 18 years. Which of the following methods would be the easiest way for Gail to save for over 18 years? Select the best answer from the choices provided. TIPS zero coupon bonds variable rate bonds callable bonds

Answer 1

The best way would be zero coupon bonds

It a type of bonds that doesn't make any interest payment

This bonds probably will not give Gail any steady additional income for the past 18 years, but she can usually get it at discounted price and has no risk of devaluation