A 9.5% coupon rate bond, with 4 years until maturity is selling at $960. An investor with a 11 required rate of return ask your advice. What is your advice regarding the purchase of the bond?

Select one:

don't purchase the bond because the bond is overvalued by $34.15

don't purchase because the bond is overvalued

purchase the bond because the bond is undervalued by $7.57

purchase the bond because the bond is undervalued by $33.84

don't purchase the bond because the bond is overvalued by $7.57

not enough data to answer

purchase the bond because the bond is undervalued by $3.43