The assumption of transitivity says that

a. For any two bundles, the consumer can establish a preference ordering.
b. Any bundle is at least as good as itself.
c. If A is preferred to B and B is preferred to C, than A is preferred to C.
d. If bundle A is preferred to bundle B, there is a region around A such that any bundle C that lies in that region is preferred to B

Jallouk corporation has two different bonds currently outstanding. bond m has a face value of $50,000 and matures in 20 years. the bond makes no payments for the first six years, then pays $2,100 every six months over the subsequent eight years, and finally pays $2,400 every six months over the last six years. bond n also has a face value of $50,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. the required return on both these bonds is 10 percent compounded semiannually. what is the current price of bond m and bond n?