Given the following information, whats the best strategy of a smart investor?

1) The yield on a 3-year, risk-free T-note = 3% 2) The yield on a 3-year, BB-grade bond = 6%, with the 3% spread reflecting only credit risk 3) The credit spread on a 3-year CDS on the 3-year, BB-grade bond is 2%

		[A] do nothing, no investment no loss
		[B] long the T-note, short BB-grade bond and CDS
		[C] short the T-note, long BB-grade bond and CDS
		[D] only long BB-grade bond and CDS as the yield is higher than T-note