1. Assume you are managing a fixed income portfolio. You expect the economy to show weaker economic growth and expect all corporate earnings, liquidity and debt coverage metrics to decline significantly. As a result of this, there is an expectation of moderately lower Treasury yields across the yield curve (parallel shift) and a decline in bond trading liquidity. Given all of this, please identify which of the investments from each scenario will perform better than the other and justify your answer with details (to be clear, you need to have answers for both a and b below).
   1. Scenario 1: Choice between purchasing an option free, zero-coupon 10-year Treasury Bond or a 10-year, option free, bullet, A- Rated Corporate Bond. Which of these trades would likely outperform the other over the next year and explain why. Be thorough in justifying your opinion.

2. Scenario 2: Given the same economic scenario above, if you were given a choice between purchasing a 5-year A rated, option free, bond or a 5-year A-rated Callable bond. Which of these trades would outperform the other and explain why. Be thorough in justifying your opinion.