11. (5 points) Given the opportunity to invest in one of the three bonds listed below. Assume an interest rate of 7%, and coupon are paid twice per year. a) Which would you purchase? Why and why not? (2 points) b) If you foresee that the interest rate may change raise to 9% very soon. Considering the risk of interest rate, which bond would you purchase? Why and why not? (3 points) Bond A B Face Value $1,000 $1,000 $1,000 Annual Coupon Rate 4% 7.5% 8.5% Maturity Price 1 year $990 17 years $990 25 years $990