3. You believe interest rates will soon fall. a. Would you rather own a three-year, 6 percent coupon, fixed-rate bond or an equivalent-risk, three-year, floating-rate bond currently paying 6 percent interest?

b. Would your answer to (a) change if you were contemplating issuing a bond rather than owning one? If so, how?

c. Would your answer to (a) change if, as an investor, you believed interest rates would soon rise? If so, why?