Evaluate which of the following options would be your best investment based solely on the yield to maturity criterion.

Option #1: Purchase a $120,000 coupon bond with a 5.5% coupon rate selling for $126,800 and maturing in 12 years

Option #2: Purchase a $120,000 discount bond selling for $59,200 and maturing in 12 years

Option #3: Loan a reliable friend $120,000 with promised repayments of $28,231.63 at the end of year 4, $79,702.51 at the end of

year 8, and $168,759.89 at the end of year 12.

Assume the payments represent 1/6, 2/6, and 3/6 repayment of the original loan amount respectively.