The Magic Bow, other wise known as "Khryselakatos" is a rare weapon in the game. The bow fires off poisonous arrows, and comes with +12 damage.
Supposedly, the bow can be found some where in the Underworld, however this has yet to be confirmed, as our informant is Sharur. Most likely, since skeletons wield bows in the Underworld, that one might be holding the magic bow. It's also rumored that Merlin might also carry the bow sometimes.