3. You are the manager for the bond portfolio of a pension fund. The policies of the fund allow for the use of active strategies in managing the bond portfolio. It appears that the economic cycle is beginning to mature, inflation is expected to accelerate, and in an effort to contain the economic expansion, the central bank is moving toward tighter monetary policy. For each of the situations below, state which one of the two bonds you would prefer. Briefly justify your answer in each case. a. Government of Canada (Canadian pay) 3% coupon due in 2024 and priced at 98.75 to yield 3.50% to maturity or Government of Canada (Canadian pay) 3% coupon due in 2034 and priced at 91.75 to yield 4.19% to maturity b. Texas Power and Light Co. 4.50% coupon due in 2028, rated AAA, and priced at 90 to yield 5.02% to maturity Or Arizona Public Service Co. 4.55% coupon due in 2028, rated A-, and priced at 92 to yield 5.85% to maturity c. Commonwealth Edison 2.75% due in 2027, rated Baa, and priced at 91 to yield 6.2% to maturity or Commonwealth Edison 7.375% due in 2027, rated Baa, and priced at 114.40 to yield 6.2% to maturity. d. Shell Oil Co. 5.50% sinking fund debentures due in 2033, rated AA (sinking fund begins September 2023 at par), and priced at 89 to yield 6.1% to maturity or Warner-Lambert 5.50% sinking fund debentures due in 2033, rated AA (sinking fund begins April 2026 at par), and priced at 91 to yield 6.0% to maturity