Consider the following risk-free government bonds with fixed coupons that are paid annually at the end of every year. None of these bonds has any callable or puttable features. Assume that the t=0 coupon has already been paid. The table below reports coupons, market prices, face values and the time to maturity for each bond. Assume that investors can freely buy and sell these bonds at the indicated market prices.

Bond	Coupon	Market Price	Face Value	Time to Maturity
B1	1%	$123	$100	40 years
B2	2%	$166	$100	40 years
B3	3%	$210	$100	40 years

Which of the following claims regarding the value of the three bonds is correct?

Group of answer choices

All three bonds are undervalued.

It is impossible to determine the relative values of all three bonds.

Bond B1 is overvalued while bonds B2 and B3 are undervalued.

All three bonds are overvalued.

All three bonds are fairly valued.

Bond B3 is overvalued while bonds B1 and B2 are undervalued.

Bond B2 is overvalued while bonds B1 and B3 are undervalued.