In planning for your retirement -- twenty-five years from today -- you are considering an investment today into one of two bonds:

a. A twenty-five year 12% per annum coupon rate bond (paid semi-annually). There are 50 remaining coupons and the upcoming coupon is in exactly six months. Par is $1,000.

b. A bond that pays no coupons but only a lump sum amount (the face amount) in exactly 25 years (i.e., a zero-coupon bond). Prices of both bonds are $1,429.644 and they both yield 8% per annum compounded semi-annually. If you buy a bond (a) you expect to be able to reinvest coupons at 8 percent per annum compounded semi-annually until your retirement.

Required: If your objective is to have the most money possible for your retirement, which bond is the better buy (other things equal)?