As a corporate treasurer, you manage a $100 million bond portfolio. Economists suggest (and you believe) that market interest rates are headed up over the next several months. To reduce interest rate risk you should attempt to: I. Reduce the average maturity of the portfolio by selling long-term bonds and buying short-term bonds. II. Lengthen the average maturity of the portfolio by buying long-term bonds and selling short-term bonds. III. Reduce the average coupon rate by selling high-coupon bonds and buying low-coupon bonds. IV. Increase the average coupon rate by buying high-coupon bonds and selling low-coupon bonds. A) I only B) I and II only C) II and III only D) I and IV only E) I, II, III, and IV 14