consider the following characteristics of two annual pay bonds for the same issuer with the same priority in the event of default

you also driven the following spot interest rates from the current yield curve

neither bonds prices consistent with the spot rates. using the information in these displays recommend either Bond a or Bond B for purchase justify your choice do not run intermediate calculations round your answers to the nearest cent

Consider the characteristics of two annual pay bonds from the same issuer with the same priority in the even of default: Bond A Bond B $100 Annual Par value Coupons Maturity Coupon rate Yield to maturity Price $100 Annual 3 yrs 8% 3 yrs 4% 10.50% 10.60% 93.84 83.76 You also observe the following spot interest rates from the current yield curve! Term (yrs) Spot Rates (zero coupon, %) 1 4 % 2 3 10 INMENT Neither bond's price is consistent with the spot rates. Using the information in these displays, recommend either Bond A or Bond B for purchase. Justify your choice. 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. Check My Work