Consider price quotes and characteristics for two different bonds:

Bond ABond BPar value$100$100Coupon PaymentAnnualAnnualMaturity3 years3 yearsCoupon Rate8%5%Yield to Maturity10.75%10.85%Price$93.25$85.67 At the same time, you observe the spot rates for the next three years: TermSpot (Zero-Coupon) Rates1 year5%2 years8%3 years11% 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-Bond ABond BItem 3 appears to be the better purchase.