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1. If you believe that market interest rates on 10-year Treasury Notes will rise significantly over the next two years (from 1% to 3%), your
1. If you believe that market interest rates on 10-year Treasury Notes will rise significantly over the next two years (from 1% to 3%), your best investment is
A. An A-rated 3% coupon Home Depot bond, price=97, YTM = 3.3%, maturing in 2033, callable at 103 in February 2023
B. An A-rated 2.5% coupon Home Depot bond, price=97, YTM = 2.8%, maturing in 2033, putable at 100 in February 2023
C. An A-rated 2.7% coupon Home Depot bond, price=97, YTM = 3%, maturing in 2033, not callable nor putable
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