During a global recession, global interest rates are typically kept low. This encourages borrowing and keeps credit markets liquid. If you expect interest rates to remain low for the next 3 years, at say 0.50%, which of the following instrument would be the most profitable for you.

Group of answer choices

Buy a 3 year plain vanilla interest rate swap, where you pay float and receive fixed 2%

Buy a 3 year credit default swap on bonds that have variable rates.

Buy a 3 year par value US T-note with yield 0.50%

Sell a 3 year plain vanilla interest rate swap where you receive float and pay fixed 2%