Medici Patriarchs purchased the following investments during 2017:

(a) 1,000 shares of Private Limited, a start-up company. The value of this investment was based on an internally developed model.

(b) 5,000 shares of CIBC, a public company listed on the TSX.

(c) $15,000 of corporate bonds. Although these bonds do not trade in an active market, their value closely resembles movements in the Bank of Canada bond rate.

Based on the IFRS 13 guidance, indicate at which level in the fair value hierarchy these investment values will fall (level 1, 2, or 3). Explain your choice.