Problem $2($Required$,20$ marks$)$ The current spot rates $($quoted as annual effective interest rate$)$ are given in the following table: There are two coupon bonds available in the market: $-$ Bond A $-$ It is a $2$ year bond with face value is $\backslash (\backslash$$ $1000\backslash ).$ The annual coupon rate is $\backslash (6\backslash \%\backslash )$ payable semiannually. $-$ Bond $\backslash ($ B $\backslash )--$ It is a $3$ year bond with face value is $\backslash (\backslash$$ $1000\backslash ).$ The annual coupon rate is $\backslash (8\backslash \%\backslash )$ payable annually. $($a$)$ Suppose that an investor wishes to choose a bond with the highest annual effective yield rate, which bond should he choose? Explain your answer. $($b$)$ Suppose that the spot rates after $18$ months are as follows: Calculate the price of the bond chosen in $($a$)$ at that time.