Doug has been approached by his broker to purchase a bond for $795. He believes the bond should yield 8%. The bond pays 5% annual coupon rate and has 12 years left until maturity. What should Doug's analysis of the bond indicate to him?
A. The bond is undervalued, purchase
B. The bond is undervalued, do not purchase
C. The bond is overvalued, purchase
D. The bond is overvalued, do not purchase
