At the present time, you expect a decline in interest rates and must choose between two portfolios of bonds with the following characteristics:

Portfolio A Portfolio B Average maturity 10.5 years 10.0 years Average YTM 7% 10%

Modified duration 5.7 years 4.9 years Modified convexity 125.18 40.30 Call features Non-callable Deferred call features that range from 1 to 3 years Select one of the portfolios and discuss three factors that would justify your selection.