9. Consider the following risk-free government bonds with fixed coupons that are paid annually at the end of every year. None of these bonds has any callable or puttable features. Assume that the t : 0 coupon has already been paid. The table below reports coupons, market prices, face values and the time to maturity for each bond. Assume that investors can freely buy and sell these bonds at the indicated market prices. Bond B1 B2 B3 Coupon Price 1% $123 2% $166 3% $210 Face Value $100 $100 $100 Time to Maturity 40 Years 40 Years 40 Years Which of the following claims regarding the value of the three bonds is correct? (a) All three bonds are undervalued. (b) Bond B1 is undervalued while bonds B2 and B3 are overvalued. (c) Bond B2 is undervalued while bonds B1 and B3 are overvalued. (d) Bond B3 is undervalued while bonds B1 and B2 are overvalued. (e) All three bonds are overvalued. (f) All three bonds are fairly valued. (g) It is impossible to determine the relative values of all three bonds