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Bond Pricing and the Yield Curve: The tables below show, respectively the characteristics of two annual bonds from the same issuer with the same priority

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Bond Pricing and the Yield Curve: The tables below show, respectively the characteristics of two annual bonds from the same issuer with the same priority in the event of default, and spot interest rates. Neither bond's price is consistent with the spot rates. Using the information in these tables, recommend either bond A or bond B for purchase Bond Characteristics Bond A Annual 3 years 10% 10.65% 98.40 Bond B Annual 3 years Coupons Maturity Coupon Rate Yield to Maturity Price 10.75% 88.34 Spot Interest Rates Maturity Spot Rates (Zero Coupon) 2 0 11%

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