Consider a $5-$year $2\%-$coupon US Treasury note priced at $$100\mathrm{.}00.$ If it occurred today, which event below would be most likely to decrease this bond's price?

A decrease in expected economic growth

Open market purchases by the European Central Bank $($ECB$)$

An increase in expected inflation

None of the above

A corporation needs to raise $$100$M today. lt can issue a $10-$year $3\%-$coupon bond at par. Or it can issue a $5-$year $2\%-$coupon bond at par and issue another $5-$year bond in $5$ years. The firm expects the yield on its $5-$year bonds to be $3\mathrm{.}50\%$ in $5$ years. Assuming the firm will not default, which strategy has lower expected interest costs?

Issuing the $10-$year bond

Issuing the $5-$year bonds sequentially

The expected costs are the same

Not enough information