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3. Sofia Tumer thinks that the recent Federal Reserve policy is going to push the interest rates down. She is considering keeping only one of

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3. Sofia Tumer thinks that the recent Federal Reserve policy is going to push the interest rates down. She is considering keeping only one of the three bonds in her portfolio. She knows that bond A has a duration of 2.234, bond B has a duration of 2.867. and bond C has the following characteristics: Par Value 1.000 Life 3 years Coupon Rate 6% Discount rate 10 percent Which one of the three bonds should she keep? Why? Explain. (20 Points)

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