A bank has invested in two bonds, bond X and bond Z, which have the following future cash-flows: Bond Current Rating End year 1 payoff End year 2 payoff End year 3 payoff A $ 6 mil $6 mil $ 106 mil z BB $5 mil $5 mil $ 105 mil Suppose a bank is very bullish on both companies and would like to bet that both bonds will increase in value. Suppose the bank can find a counterparty to trade CDs or total return swap with. If the bank is interested in holding CDS, should it buy or sell? What about total return swap (20pts)