Consider price quotes and characteristics for two different bonds: Bond A $100 Annual Bond B $100 Annual Par value Coupon Payment Maturity Coupon Rate Yield to Maturity Price 3 years 9% 3 years 5% 10.55% $86.33 10.45% $96.42 At the same time, you observe the spot rates for the next three years: Term 1 year 2 years 3 years Spot (Zero-Coupon) Rates 5% 7% 10% Demonstrate whether the price for either of these bonds is consistent with the quoted spot rates. Under these conditions, recommend whether Bond A or Bond B appears to be the better purchase. Do not round intermediate calculations. Round your answers to the nearest cent. The non-arbitrage price of Bond A: $ The non-arbitrage price of Bond B: $ -Select- appears to be the better purchase. Consider price quotes and characteristics for two different bonds: Bond A $100 Annual Bond B $100 Annual Par value Coupon Payment Maturity Coupon Rate Yield to Maturity Price 3 years 9% 3 years 5% 10.55% $86.33 10.45% $96.42 At the same time, you observe the spot rates for the next three years: Term 1 year 2 years 3 years Spot (Zero-Coupon) Rates 5% 7% 10% Demonstrate whether the price for either of these bonds is consistent with the quoted spot rates. Under these conditions, recommend whether Bond A or Bond B appears to be the better purchase. Do not round intermediate calculations. Round your answers to the nearest cent. The non-arbitrage price of Bond A: $ The non-arbitrage price of Bond B: $ -Select- appears to be the better purchase