Consider 3 bonds that have the same credit risk and time to maturity: #1: 10-year corporate bond with an 8% annual coupon rate (annual coupons) #2: 10-year corporate bond with a 12% annual coupon rate (semiannual coupons) #3: 10-year municipal bond with a 12% annual coupon rate (semiannual coupons) Which of the following statement reflects the correct ranking of the prices of these bonds, from highest to lowest?

A. 1, 2, 3

B. 2, 1, 3

C. 3, 1, 2

D. 3, 2, 1