1. A 5-year, annual-paying sinking-fund bond is priced at $ 102.66. Assuming intermittent principal payments are immaterial, is it over, under, or fairly valued given the term structure of 1.5%, 1.75%, 2%, 2.25%, 2.5% and coupons of 3.2%, 3%, 2.8%, 2.6%, and 2.4% for the 5 years? A. Over-valued B. Under-valued C. Fairly-valued D. Not enough information