14.You manage a bond portfolio and believe that market interest rates are going lower over the next several months. To profit from your belief, you should:(1 Point)

I.Reduce the average maturity of the portfolio by selling long-term bonds and buying short-term bonds.

II.Lengthen the average maturity of the portfolio by buying long-term bonds and selling short-term bonds.

III.Reduce the average coupon rate by selling high-coupon bonds and buying low-coupon or zero coupon bonds.

IV.Increase the average coupon rate by buying high-coupon bonds and selling low-coupon bonds.

A)I only

B)I and II only

C)II and III only

D)I and IV only