Assume you are looking at the following bonds for purchase:

Bond A: 5 year US Treasury Note @ 3.25% YTM

Bond B: 10 year US Treasury Note @ 3.50% YTM

Bond C: 5 year BBB rated Non-Callable Corporate Bond @ 4.85% YTM

Bond D: 10 year AA rated Non-Callable Corporate Bond @ 4.35% YTM

Bond E: 10 year Agency Callable in 5 years @ 4.40% YTC | 4.75% YTM

Which bond should perform the best in rates down scenarios (assuming spreads remain constant)?

a) Bond A

b) Bond B

c) Bond

C d) Bond D

e) Bond E