. Jo Fixed would like to invest in the following three bonds:

A. Corporate AAA. 5% coupon, 20 yrs. to maturity, 4% YTM

B. High Yield BBB. 8% coupon, 10 yrs. to maturity, 10% YTM

C. US Treasury, 3% coupon, 3 yrs. to maturity, 2% YTM

Required: Recommend weights to Jo for each one of securities above assuming

i. Contraction

ii. Recession

iii. Recovery

weights > 0