Based on Exhibit 1, Rayes would most likely conclude that relative to Bond #1,Bond #2 is:

a. overpriced

b. underpriced

c. fairly priced

Exhibit 1 Summary Results of Hsu's Analysis Using the OAS Approach \begin{tabular}{lc} Bond & OAS (in bps) \\ \hline Bond \#1 & 25.5 \\ Bond #2 & 30.3 \\ \hline \end{tabular} Exhibit 1 Summary Results of Hsu's Analysis Using the OAS Approach \begin{tabular}{lc} Bond & OAS (in bps) \\ \hline Bond \#1 & 25.5 \\ Bond #2 & 30.3 \\ \hline \end{tabular}