3. Today is your graduation day. Given your ability to thrive in the study of finance, you plan to return to school six years from today and begin a PhD program. The PhD program will require cash outflows of $15,000 per year for each of three years. The first of the annual cashflows will be paid six years from today. You will finish your PhD studies exactly eight years from today. Your required rate of return is 8%. To pay for your PhD studies, you plan to make an investment in bonds today. You are concerned about volatility of interest rates. You will invest in one of the following: Bond A has a value today of $1057.47, pays an annual coupon rate of 9%, has a face value of $1000, and matures in eight years. Bond B has a value today of $741.40, pays an annual coupon rate of 3.5%, has a face value of $1000, and matures in eight years. Which bond would you select? Explain using no more than 50 words. Provide calculations to support your response. 3. Today is your graduation day. Given your ability to thrive in the study of finance, you plan to return to school six years from today and begin a PhD program. The PhD program will require cash outflows of $15,000 per year for each of three years. The first of the annual cashflows will be paid six years from today. You will finish your PhD studies exactly eight years from today. Your required rate of return is 8%. To pay for your PhD studies, you plan to make an investment in bonds today. You are concerned about volatility of interest rates. You will invest in one of the following: Bond A has a value today of $1057.47, pays an annual coupon rate of 9%, has a face value of $1000, and matures in eight years. Bond B has a value today of $741.40, pays an annual coupon rate of 3.5%, has a face value of $1000, and matures in eight years. Which bond would you select? Explain using no more than 50 words. Provide calculations to support your response