Consider the characteristics of two annual paybonds from the same issuer with the same priority in the event of default:

You also observe the following spot interest rates from the current yield curve:

Neither bond$$s price is consisten t with the spotrates. Using the information in these displays, recommend either Bond A or Bond B for purchase. Justify your choice. Bond A Bond B

Coupons Annual Annual

Maturity $3$ years $3$ years

Coupon rate $10\%6\%$

Yield to maturity $11\%11\%$

Price $98\mathrm{.}488\mathrm{.}34$ Term years Spot Rates $($zero coupon, $\%)$

$15\%$

$28$

$311$ Do it on excel