Exactly one year ago, an investor purchased a $1000 face value, zero- coupon bond with 11 years remaining to maturity. The YTM was 8.0%. Now, one year later, with market rates unchanged, an investor purchases an annuity that pays $ 40 every six months for 10 years. The combined value of the two investments based on the 8% BEY is approximately:()
A. $966.
B. $1000.
C. $1007.