Assume that your investment horizon is 5 years. You consider buying a 10-years to maturity coupon bond with coupon rate 7% paid once a year and par 1000. Assume that the yield curve today is flat at 6%.

Would you prefer a scenario where the yield curve will rise to being flat at 6.5% in 2-months from now and stay that way for the next five years and a half or a scenario where the yield curve will fall to become flat at 5.5% 2-months from now and stay at that level for the next five years and a half?