9. Consider price quotes and characteristics for two different bonds: Bond A Bond B Annual Coupon Payment Maturity Coupon Rate Yield to Maturity Annual 3 years 3 years 10% 6% 10.65% 10.75% Price 98.40...

Extracted text: 9. Consider price quotes and characteristics for two different bonds: Bond A Bond B Annual Coupon Payment Maturity Coupon Rate Yield to Maturity Annual 3 years 3 years 10% 6% 10.65% 10.75% Price 98.40 88.34 At the same time, you observe the spot rates for the next three years: Term Spot (Zero-Coupon) Rates 5% year 2 years 8% 3 11% years Demonstrate whether the price for either of these bonds is consistent with the quoted spot rates. Under these conditions, recommend whether Bond A or BondB appears to be the better purchase.