B5. Because of the increase in government spending through the COVID crisis, you believe that inflation poses a real risk, which will put upward pressure on nominal interest rates. Assuming that you cannot short sell bonds, given that, which of the following 2 bonds would be a better investment, if you want to minimise short-term losses (or maximise short-term gains)? Why? Show your work to justify your recommendation. [6 marks] Bond A pays coupons semi-annually. Bond Coupon Rate YTM Years to Maturity 10 9 A B 4% 0% 3% 5%