(4) Suppose you think that Treasury interest rates will increase 100 bps over the next year (in other words, a parallel shift up in the yield curve). Which would you rather invest in: (1) a callable bond with negative convexity at the current yield-to-maturity, or (2) a non-callable bond with positive convexity (assuming all other characteristics are the same)? Assume that both bonds currently have the same YTM, and explain your answer with a graph.