Making New Bowsprit

[BillShuman]

I have just purchased a 1986 Bayfield 40. It turns out the wooden bowsprit has some rot (about an inch and a half deep) near the forward end. It was likely caused by water intrusion where the bolts holding the stem fitting (I think that's what it's called) is attached. What kind of wood should I make the new one out of? I was also thinking of epoxy coating it and painting it instead of using varnish. Does it make sense to bore out larger holes, epoxy fill them, and redrill for the bolts (similar to what you do when attaching hardware to a cored deck). My hope is to prevent this from happening again.

Thanks.