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How can we synthetically replicate a 2 year 5% coupon bond with face value of $100
A portfolio of 0.05 1-year zero coupon bonds and 1.05 2-year zero coupon bonds
A portfolio of 0.05 1-year 3% coupon bonds + 0.05 2-year 2% coupon bonds
A portfolio of 0.05 1-year 2% coupon bonds + 0.05 2-year 3% coupon bonds
A portfolio of 1.05 1-year zero coupon bonds + 0.05 2-year zero coupon bonds

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