3.Given the opportunity to invest in one of these two bonds listed below, which would you purchase?

Bond KTB:pays 10% semiannually and has 5 years to maturity. The market requires an interest rate of 10%. The market price of Bond KTB is now $980.

Bond BBL: pays 8% semiannually and has 6 years to maturity. The market requires an interest rate of 8%. The market price of Bond BBL is now $1050. (6 points)